Copper prices boost income at Turquoise Hill, stock jumps

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(Kitco News) – Turquoise Hill (TRQ: TSX & NYSE) said today it had revenue of $264.4 million in Q3’20, and increase of 26.4% from $209.2 million in Q3’19.

The company’s stock was up 15% to C$13.219 a share as of noon ET.

Copper revenue increased by 29.5% driven by higher sales volumes and a 12.5% increase in average copper price. Gold revenue increased by 16.6% driven by a 29.7% increase in average gold price partly offset by lower volumes of gold in concentrate sold.

Income for the period was $161.7 million compared with $45.1 million in Q3’19. This difference was primarily due to a $55.2 million increase in revenue versus Q3’19 together with $86.1 million of additional deferred tax assets recognized in Q3’20 versus Q3’19.

Income attributable to owners of Turquoise Hill in Q3’20 was $128.6 million or $0.64 per share, compared with $71.7 million or $0.36 per share in Q3’19.

Earlier this month Turquoise Hill began arbitration proceedings against its biggest shareholder Rio Tinto to seek “clarity” on financing for Oyu Tolgoi, one of Rio’s biggest growth projects.

Turquoise Hill owns 66% of Oyu Tolgoi, one of the world’s largest copper-gold-silver mines that went into production in early 2013 and now is shipping concentrate to customers in China.

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