Oyu Tolgoi (OT) released its report on production for the fourth quarter of 2014, with details on new ore content data and reports of increased efficiency.
The company produced 50,300 tons of copper and 278,000 ounces of gold in the fourth quarter of 2014, increasing copper production by 40 percent and gold by 110 percent, compared to the third quarter of 2014.
An increase in ore resources has influenced growing productivity. The company highlights that they have increased their efficiency, although the company suffered a fire at its concentrator plant in December 2014.
Concentrate sales were reported to be strong as well in the last quarter, exceeding production amounts, and the amount of reserves in storage decreased more than expected.
As of the fourth quarter of 2014, OT’s concentrate production increased by 186,700 tons (39.2 percent), compared to the third quarter of 2014. In 2014, 563,000 tons of concentrate was produced with an average of 26.3 percent copper content.
Production in 2014, in accordance with the metals contained in the concentrate, was 148,000 tons of copper; 589,000 ounces of gold, and 893,000 ounces of silver.
Sales were higher than production in 2014, namely 185,800 tons of copper, 561,000 ounces of gold, and 1,093,000 ounces of silver were sold.
In the last quarter of 2014, OT’s copper recovery rate for the concentrator plant reached 90.7 percent on average. The results were 87.6 to 87.9 percent in the first two quarters of 2014, while in the third quarter of 2014 it reached 89.3 percent.
The gold recovery rate was 78.6 percent, while silver was 71.6 percent in the last quarter of 2014. The increased recovery rate was positively influenced by the growth of ore content in the mines.
Specifically, copper content in the ore was 0.74 percent, gold was 1.46 grams per ton, and silver was 1.65 grams per ton.
OT reports that the copper content in the ore increased by 25.4 percent, gold by 82.5 percent, and silver by 0.6 percent compared to the third quarter of 2014.
This year OT plans to produce 175,000 to 195,000 tons of copper, and 600,000 to 700,000 ounces of gold. After releasing the fourth quarter report, OT’s stock on the Toronto Stock Exchange increased from 3.28 to 3.41 CDN, and was 3.31 CDN at the close of trade.