ViXS Obtains Final Order

TORONTO, ON—(Marketwired – July 31, 2017) – ViXS Systems Inc. (TSX: VXS) (“ViXS“), a pioneer and leader in advanced media processing solutions, is pleased to announce that today it obtained a final order of the Ontario Superior Court of Justice (Commercial List) (“Final Order“) approving the previously announced proposed acquisition by Pixelworks, Inc. (NASDAQ: PXLW) (“Pixelworks“) of all of ViXS' outstanding common shares pursuant to an arrangement agreement dated May 18, 2017 (the “Arrangement“) between ViXS and Pixelworks.

Receipt of the Final Order follows ViXS's Annual and Special Meeting of shareholders held on July 27, 2017, where a special resolution approving the Arrangement was voted for by 98.66% of the votes cast by ViXS shareholders present in person or represented by proxy at the meeting.

Completion of the Arrangement remains subject to the satisfaction or waiver of certain conditions, including obtaining certain third–party consents and approvals. It is anticipated completion will occur in early August 2017.

Further details regarding the Arrangement are set out in ViXS's notice of annual and special meeting of shareholders and Management Information Circular dated June 26, 2017, which is available on SEDAR at www.sedar.com.

About ViXS Systems Inc.

ViXS is a pioneer and market leader in designing revolutionary media processing semiconductor solutions for video over IP streaming solutions, with approximately 470 patents issued and pending worldwide, numerous industry awards for innovation, and over 39 million media processors shipped to date. ViXS is driving the transition to Ultra HD 4K across the entire content value chain by providing professional and consumer grade chipsets that support the new High Efficiency Video Coding (HEVC) standard up to Main 12 Profile, reducing bandwidth consumption by 50% while providing the depth of color and image clarity needed to take advantage of higher–resolution content. ViXS' XCodePro 300 family is ideal for Ultra HD 4K infrastructure equipment, and the XCode 6000 family of system–on–chip (SoC) products achieve unprecedented levels of integration that enable manufacturers to create cost–effective consumer entertainment devices.

ViXS is headquartered in Toronto, Canada with offices in Europe, Asia and North America. VIXS™, the ViXS® logo, XCode®, XCodePro™, and Xtensiv™ are trademarks and/or registered trademarks of ViXS. XConnex™ and other trademarks are the property of their respective owners. For more information on ViXS, visit our website: www.vixs.com.

Forward–Looking Statements

Certain statements in this press release which are not historical facts constitute forward–looking statements or information within the meaning of applicable securities laws (“forward–looking statements“). Such statements include, but are not limited to, statements regarding whether the Arrangement will be consummated, including whether conditions to the consummation of the Arrangement will be satisfied, and the anticipated timing for the closing of the Arrangement and regarding receipt of all necessary consents and approvals. The use of terms such as “may”, “anticipated”, “expected”, “projected”, “targeting”, “estimate”, “intend” and similar terms are intended to assist in identification of these forward–looking statements. Readers are cautioned not to place undue reliance upon any such forward–looking statements. Such forward–looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause ViXS' actual results to be materially different from historical results or from any results expressed or implied by such forward–looking statements. Accordingly, there can be no assurance that forward–looking statements will prove to be accurate and readers are therefore cautioned not to place undue reliance upon any such forward–looking statements.

Factors that could cause results or events to differ materially from current expectations expressed or implied by forward looking statements contained herein include, but are not limited to: the ability of the parties to receive, in a timely manner and on satisfactory terms, stock exchange approval for the Arrangement; the ability of the parties to satisfy, in a timely manner, the conditions to the closing of the Arrangement and other expectations and assumptions concerning the Arrangement; and other factors discussed in the “Risk Factors” section of the Circular. All forward–looking statements are qualified in their entirety by this cautionary statement. ViXS is providing this information as of the current date and does not undertake any obligation to update any forward–looking statements contained herein as a result of new information, future events or otherwise except as may be required by applicable securities laws.

International Barrier Enters Agreement to Combine with Louisiana-Pacific Corporation

VANCOUVER, BC and WATKINS, MN—(Marketwired – July 31, 2017) – International Barrier Technology Inc. (the “Company“) (OTCQB: IBTGF) (TSX VENTURE: IBH) is pleased to announce that it has entered into an agreement with Louisiana–Pacific Canada Ltd. and Louisiana–Pacific Corporation (collectively, “LP“), pursuant to which LP has agreed to acquire all of the issued and outstanding common shares of the Company (the “Transaction“).

The Transaction will be implemented by way of plan of arrangement (the “Arrangement“) under the Business Corporations Act (British Columbia). Pursuant to the Arrangement, each issued and outstanding common share of the Company will be transferred to LP in consideration for US$0.41 per common share, for a total purchase price of US$22 million. Upon completion of the Transaction, the Company will become a wholly–owned subsidiary of LP.

Michael Huddy, President and Chief Executive Officer of the Company stated, “The Board of Directors considered the Company's strategic options, and determined that the Transaction is an attractive opportunity for the Company's shareholders. The Transaction provides shareholders with cash liquidity and a price representing a significant premium to the last closing price and 30 day volume weighted average price of the Company's common shares.”

Evans & Evans, Inc. provided an opinion to the Board of Directors that, subject to the assumptions, limitations and qualifications set out in such opinion, the terms of the Transaction are fair, from a financial point of view, to the shareholders of the Company. Taking into account this opinion, the Board of Directors has determined that the Arrangement is in the best interests of shareholders, and recommends that its shareholders vote in favour of the Arrangement.

The Arrangement is subject to applicable shareholder, court and regulatory approvals and the satisfaction of certain other closing conditions customary in transactions of this nature. The Arrangement is arm's length and will require approval of at least 66⅔% of the votes cast by Company shareholders at a special meeting of shareholders of the Company. Information regarding the Arrangement will be contained in an information circular to be prepared, filed and mailed in due course to Company shareholders in connection with the special meeting. All shareholders are urged to read the information circular once it becomes available as it will contain additional important information concerning the Arrangement.

Upon completion of the Transaction, the Company's shares will be de–listed from the TSX Venture Exchange and it is expected that LP will apply to cause the Company to cease being a reporting issuer under applicable Canadian securities laws. Following closing of the Transaction, the Company will operate as part of LP's OSB business. LP will continue to honor the Company's existing contracts and service its customers' needs. The Company expects the Transaction to close in early October, 2017.

About International Barrier Technology Inc.

International Barrier Technology Inc. develops, manufactures, and markets proprietary fire–resistant building materials branded as LP® FlameBlock® Fire–Rated OSB Sheathing and Blazeguard FR Deck Panel. The Company's award–winning fire–resistant wood panels use a patented, non–toxic, non–combustible coating with an extraordinary capability: it releases water in the heat of fire. The panels exceed “model” building code requirements in every targeted fire test and application, and are unique in combining properties that increase panel strength and minimize environmental and human impact. The Company's family of products provides customers a premium material choice meeting an increasingly challenging combination of requirements in residential and commercial building construction. For more information please visit: www.intlbarrier.com.

About Louisiana–Pacific Corporation

Louisiana–Pacific Corporation is a manufacturer of quality engineered wood building materials including OSB, structural framing products, and exterior siding for use in residential, industrial and light commercial construction. From manufacturing facilities in the U.S., Canada, Chile and Brazil, LP products are sold to builders and homeowners through building materials distributors and dealers and retail home centers. Founded in 1973, LP is headquartered in Nashville, Tennessee and traded on the New York Stock Exchange under LPX. For more information, visit www.lpcorp.com.

INTERNATIONAL BARRIER TECHNOLOGY INC.

Michael D. Huddy
President and Chief Executive Officer, Director

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Cautionary Note Regarding Forward–Looking Information

This news release contains “forward–looking information” within the meaning of the applicable securities legislation that is based on expectations, estimates and projections as at the date of this news release. The information in this news release about the completion of the business combination described herein, and other forward–looking information includes but is not limited to information concerning: the intentions, plans and future actions of the companies participating in the Transaction and other information that is not historical facts.

Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward–looking information and are intended to identify forward–looking information. This forward–looking information is based on reasonable assumptions and estimates of management of the Company, at the time it was made, involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward–looking information. Such factors include, among others, risks relating to the completion of the Transaction and satisfaction of all closing conditions; risks relating to receipt of all necessary shareholder, court and regulatory approvals; business integration risks; fluctuations in general economic conditions, securities markets and currency markets; changes in national and local governments, legislation and taxation; risks relating to employee relations; and risks and hazards associated with the Company's operations. Although the forward–looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders and prospective purchasers that actual results will be consistent with such forward–looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither the Company nor any other person assumes responsibility for the accuracy and completeness of any such forward–looking information. The Company does not undertake, and assumes no obligation, to update or revise any such forward–looking statements or forward–looking information contained herein to reflect new events or circumstances, except as may be required by law.

Turquoise Hill announces financial results and review of operations for the second quarter of 2017

VANCOUVER, BC—(Marketwired – July 31, 2017) – Turquoise Hill Resources (NYSE: TRQ) (TSX: TRQ) (NASDAQ: TRQ) today announced its financial results for the quarter ended June 30, 2017. All figures are in U.S. dollars unless otherwise stated.

HIGHLIGHTS

  • Oyu Tolgoi achieved an All Injury Frequency Rate of 0.27 per 200,000 hours worked for the six months ended June 30, 2017.
  • During Q2'17, underground lateral development, sinking of Shafts 2 and 5 and the convey–to–surface decline system all continued to progress.
  • Underground lateral development made good progress during Q2'17 with approximately 1.4 equivalent kilometres completed.
  • Shaft 5 sinking progressed approximately 190 metres during Q2'17 with sinking rates increasing significantly beyond those seen in Q1'17.
  • During Q2'17, Oyu Tolgoi spent $184.7 million on underground expansion with total 2017 project spend of $547.9 million at the end of the second quarter.
  • Q2'17 revenue of $203.7 million decreased 14.2% over Q1'17 reflecting lower concentrate sales and lower copper prices.
  • In Q2'17, the Company recorded net income attributable to owners of Turquoise Hill of $23.8 million or $0.01 per share.
  • Cash generated from operating activities before interest and taxes in Q2'17 was $51.5 million.
  • Oyu Tolgoi's Q2'17 production results were as planned and were impacted by a scheduled five–day concentrator maintenance shutdown.
  • In Q2'17, material mined increased 3.5% over Q1'17 while grades for the quarter were flat compared to Q1'17.
  • Copper and gold production for Q2'17 was essentially in–line with Q1'17 production despite the planned maintenance shutdown.
  • During June 2017, Oyu Tolgoi shipped its three millionth tonne of concentrate.
  • For Q2'17, Oyu Tolgoi's cost of sales was $2.30 per pound of copper sold; C1 cash costs were $1.92 per pound of copper produced and all–in sustaining costs were $2.27 per pound of copper produced(1).
  • Operating cash costs1 for Q2'17 were $163.6 million, a decrease of 2.9 % over Q1'17.
  • Turquoise Hill's cash and cash equivalents at June 30, 2017 were approximately $1.4 billion.

1 Please refer to the NON–GAAP MEASURES section of this press release for further information.

FINANCIAL RESULTS

In Q2'17, the Company recorded net income attributable to owners of Turquoise Hill of $23.8 million ($0.01 per share) compared with net income attributable to owners of Turquoise Hill of $29.8 ($0.01 per share) in Q2'16, a decrease of $6.0 million as the result of lower copper prices and lower gold sales, partly offset by adjustments to recognize additional deferred tax assets. Cost of sales for Q2'17 was $188.9 million compared with $237.1 million in Q2'16 reflecting lower volumes of concentrates sold, partly offset by an increased cost of production due to grade reductions. Cash generated from operating activities before interest and taxes in Q2'17 was $51.5 million compared with $161.6 million in Q2'16, mainly reflecting the impact of lower production and lower volumes of gold in concentrates sold. Capital expenditure on property, plant and equipment was $205.2 million on a cash basis in Q2'17 compared to $53.3 million in Q2'16, attributed principally to underground and a lesser amount for open–pit capital activities.

Turquoise Hill's cash and cash equivalents at June 30, 2017 were approximately $1.4 billion.

OYU TOLGOI

The Oyu Tolgoi mine is approximately 550 kilometres south of Ulaanbaatar, Mongolia's capital city, and 80 kilometres north of the Mongolia–China border. Mineralization on the property consists of porphyry–style copper, gold, silver and molybdenum contained in a linear structural trend (the Oyu Tolgoi Trend) of deposits throughout this trend. They include, from south to north, the Heruga Deposit, the Oyut deposit and the Hugo Dummett deposits (Hugo South, Hugo North and Hugo North Extension).

The Oyu Tolgoi mine was initially developed as an open–pit operation. The copper concentrator plant, with related facilities and necessary infrastructure, was originally designed to process approximately 100,000 tonnes of ore per day from the Oyut open pit. However since 2014, the concentrator has improved operating practices and gained experience, which has helped achieve a consistent throughput of over 110,000 tonnes per day. This is expected to continue through 2017 with softer ores from the Central zone and eventually the Hugo North Lift 1 block cave.

In August 2013, development of the underground mine was suspended pending resolution of matters with the Government of Mongolia. Following signing of the Oyu Tolgoi Underground Mine Development and Financing Plan (Underground Plan) in May 2015 and the signing of a $4.4 billion project finance facility in December 2015, Oyu Tolgoi received the formal notice to proceed approval by the boards of Turquoise Hill, Rio Tinto and Oyu Tolgoi LLC in May 2016, which was the final requirement for the re–start of underground development. Underground construction recommenced in May 2016.

Oyu Tolgoi is expected to be the world's third–largest copper mine at peak production in 2025. Copper production is expected to increase by more than 300% between 2017 and 2025 when Hugo North Lift 1 reaches peak production. Average production from 2025 to 2030 is expected to be more than 550,000 tonnes of copper per year.

Underground development progress

The main focus of underground development programs during Q2'17 continued to be underground lateral development, sinking of Shafts 2 and 5, support infrastructure and the convey–to–surface system, which all progressed during the quarter. The Company continues to expect production from the first draw bell in mid–2020 and sustainable first production in 2021.

Oyu Tolgoi spent $184.7 million on underground expansion during Q2'17. As of June 30, 2017, total underground project spend since January 1, 2016 was $547.9 million. In addition, Oyu Tolgoi had further capital commitments2 of $1.1 billion as of June 30, 2017.

During Q2'17, underground lateral development made good progress with approximately 1.4 equivalent kilometres completed. Since the re–start of development, a total of 4.0 equivalent kilometres of lateral development has been completed.

2 Please refer to the NON–GAAP MEASURES section of the press release for further information.

During Q2'17, work at the 1,202 metre level of Shaft 2 was completed. At the end of Q2'17, sinking of the shaft was at 1,220 metres and will continue until the next level at 1,256 metres. Shaft 2 sinking is expected to be complete in 2017 at a final depth of 1,284 metres with fit out occurring over 2018.

Shaft 5 sinking progressed approximately 190 metres during Q2'17. Sinking of Shaft 5 began slower than expected due to an extended construction re–start period and lower productivity with completion now likely in early 2018. During Q2'17, sinking rates increased significantly beyond those seen in Q1'17. The Company expects consistent sinking rates for the balance of 2017. When completed, Shaft 5 will be dedicated to ventilation thereby increasing the capacity for underground activities; however, with good early progress and continued on–plan lateral development, the completion of Shaft 5 sinking in early 2018 is not expected to materially impact the lateral development plan.

The following table outlines the status of shafts for underground development as of June 30, 2017.

                     
    Shaft 1
(early development and ventilation)
  Shaft 2
(production and ventilation)
  Shaft 5
(ventilation)
  Shaft 3
(ventilation)
  Shaft 4
(ventilation)
Total Depth   1,385 metres   1,284 metres   1,178 metres   1,148 metres   1,149 metres
Diameter   6.7 metres   10 metres   6.7 metres   10 metres   11 metres
Completion   2008   Expected 2017   Expected 2018   Expected 2021   Expected 2021
Remaining   Complete   ~65 metres   ~520 metres   Not started   Not started
                     

Supporting infrastructure progressed during Q2'17 with camp construction activities continuing. The new development crusher and dewatering system were installed and are undergoing commissioning, which will enable additional development crews in the second half of 2017.

During Q2'17, development of the convey–to–surface decline continued to progress. The convey–to–surface system is the eventual route of the full 95,000 tonne per day underground ore delivery system to the concentrator; however, it is not a critical path item for first draw bell planned in mid–2020. Expected completion of the convey–to–surface system is 2022, which will facilitate the ramp up to full production by 2027.

Q2'17 operational performance

Safety is a major focus throughout Oyu Tolgoi's operations and the mine's management is committed to reducing risk and injury. Oyu Tolgoi achieved a strong All Injury Frequency Rate of 0.27 per 200,000 hours worked for the six months ended June 30, 2017.

Key financial metrics for Q2'17 are as follows:

Oyu Tolgoi Key Financial Metrics(1)

                                     
($ in millions, unless otherwise noted)   1Q(4)
2016
  2Q
2016
  3Q
2016
  4Q
2016
  1Q
2017
  2Q
2017
  1H
2016
  1H
2017
  Full Year
2016
                                     
Revenue   422.7   329.7   226.3   224.6   237.5   203.7   752.4   441.1   1,203.3
Concentrates sold ('000 tonnes)   213.1   227.4   206.2   181.9   190.2   182.0   440.5   372.2   828.6
Revenue by metals in concentrates                                    
  Copper   202.0   207.9   174.2   178.5   196.6   173.7   409.9   370.3   762.6
  Gold   216.2   115.1   45.8   42.8   37.5   26.6   331.3   64.1   419.9
  Silver   4.5   6.7   6.3   3.3   3.4   3.3   11.2   6.7   20.8
Cost of sales   207.9   237.1   232.5   184.3   194.4   188.9   445.0   383.2   861.8
  Production and delivery costs   125.9   141.2   134.3   112.5   120.7   117.7   267.1   238.4   513.9
  Depreciation and depletion   82.0   95.9   88.5   79.5   78.3   75.0   177.9   153.3   345.9
Capital expenditure on cash basis   55.9   53.3   74.4   142.7   147.9   205.2   109.2   353.0   326.3
  Underground   22.6   36.5   46.7   121.0   136.4   184.7   59.1   321.1   226.8
  Open pit(2)   33.3   16.8   27.7   21.7   11.5   20.5   50.1   32.0   99.5
Royalties   22.7   18.5   13.9   13.0   14.3   12.5   41.2   26.9   68.1
Operating cash costs(3)(4)   196.6   215.5   187.8   175.4   168.4   163.6   412.1   332.0   775.3
Unit costs ($)                                    
  Cost of sales (per pound of copper sold)   1.84   1.98   2.31   2.22   2.23   2.30   1.91   2.26   2.07
  C1 (per pound of copper produced)(3)(4)   0.06   1.12   1.56   1.57   1.85   1.92   0.56   1.89   1.02
  All–in sustaining (per pound of copper produced)(3)(4)   0.66   1.55   2.00   1.90   2.15   2.27   1.08   2.21   1.48
(1) Any financial information in this press release should be reviewed in conjunction with the Company's consolidated financial statements or condensed interim consolidated financial statements for the reporting periods indicated.
(2) Open–pit capital expenditure includes both sustaining and non–underground development activities.
(3) Please refer to the NON–GAAP MEASURES section of this press release for further information.
(4) Operating cash costs, C1 and all–in sustaining unit costs for the three months ended March 31, 2016 have been revised to reflect the change in inventory as reported in the Company's reconciliation of net income (loss) to net cash flow generated from operating activities.
   

Revenue of $203.7 million in Q2'17 decreased 14.2% over Q1'17 reflecting lower concentrate sales and lower copper prices.

Q2'17 cost of sales was $188.9 million compared to $194.4 million in Q1'17 reflecting lower volumes of concentrates sold.

Capital expenditure on a cash basis for Q2'17 was $205.2 million compared to $147.9 million in Q1'17, comprising amounts attributed to the underground project and open pit activities of $184.7 million and $20.5 million respectively. Open–pit capital expenditure includes deferred stripping of $11.3 million and tailings storage facility spending of $3.8 million.

Total operating cash costs3 at Oyu Tolgoi were $163.6 million in Q2'17 compared to $168.4 million in Q1'17 driven by lower volumes of concentrates produced. Operating cash costs include the 5% royalty payable to the Government of Mongolia and exclude deferred stripping costs.

Cost of sales was $2.30 per pound of copper sold in Q2'17, compared with $2.23 per pound of copper sold in Q1'17.

Oyu Tolgoi's C1 cash costs3 in Q2'17 were $1.92 per pound of copper produced, an increase from $1.85 per pound of copper produced in Q1'17, mainly due to lower gold sales revenues.

All–in sustaining costs3 in Q2'17 were $2.27 per pound of copper produced, compared with $2.15 per pound of copper produced in Q1'17, with key drivers being the same as for C1 cash costs per pound of copper produced, in addition to an increase in sustaining capital.

3 Please refer to the NON–GAAP MEASURES section of this press release for further information.

Key operational metrics for Q2'17 are as follows:

Oyu Tolgoi Production Data

All data represents full production and sales on a 100% basis

                                     
    1Q
2016
  2Q
2016
  3Q
2016
  4Q
2016
  1Q
2017
  2Q
2017
  1H
2016
  1H
2017
  Full Year
2016
                                     
Open pit material mined ('000 tonnes)   22,867   22,716   25,739   25,615   24,333   25,193   45,582   49,527   96,938
Ore treated ('000 tonnes)   9,662   9,525   9,146   9,819   10,087   9,637   19,187   19,724   38,152
Average mill head grades:                                    
  Copper (%)   0.70   0.64   0.66   0.61   0.51   0.51   0.67   0.51   0.65
  Gold (g/t)   0.63   0.33   0.21   0.25   0.15   0.16   0.48   0.15   0.36
  Silver (g/t)   1.92   1.92   1.99   1.50   1.30   1.38   1.92   1.34   1.83
Concentrates produced ('000 tonnes)   229.5   207.1   203.2   206.7   176.0   171.0   436.6   347.0   846.6
  Average concentrate grade (% Cu)   25.1   24.9   22.9   22.0   21.6   21.8   25.0   21.7   23.8
Production of metals in concentrates:                                    
  Copper ('000 tonnes)   57.6   51.7   46.6   45.5   38.1   37.2   109.2   75.3   201.3
  Gold ('000 ounces)   144   70   37   49   25   24   213   49   300
  Silver ('000 ounces)   395   391   361   273   215   236   786   450   1,420
Sales of metals in concentrates:                                    
  Copper ('000 tonnes)   51.2   54.4   45.7   37.6   39.5   37.3   105.7   76.7   188.9
  Gold ('000 ounces)   175   95   38   39   32   23   270   55   347
  Silver ('000 ounces)   305   395   341   239   205   222   700   427   1,280
Metal recovery (%)                                    
  Copper   85.6   83.3   78.0   76.6   74.9   74.6   84.5   74.7   81.0
  Gold   72.2   69.3   62.0   63.4   48.8   47.7   71.2   48.3   68.5
  Silver   66.4   65.9   61.7   57.2   51.8   53.9   66.2   52.9   63.1
                             

Oyu Tolgoi's second quarter production results were as planned. Ore treated in the quarter was impacted by a scheduled five–day concentrator maintenance shutdown in May, which was successfully completed. In Q2'17, material mined increased 3.5% over Q1'17 while grades for the quarter were flat compared to Q1'17. Copper and gold production for Q2'17 was essentially in–line with Q1'17 production despite the planned maintenance shutdown. Sales of copper in Q2'17 decreased 5.6% over Q1'17 due to lower concentrate volumes during the quarter. Gold sales in Q2'17 decreased 28.1% over Q1'17 due to sales in Q1'17 including some higher–grade concentrate from Q4'16. During June 2017, Oyu Tolgoi shipped its three millionth tonne of concentrate.

Operational outlook

Oyu Tolgoi is expected to produce 130,000 to 160,000 tonnes of copper and 100,000 to 140,000 ounces of gold in concentrates for 2017. Open–pit operations are expected to mine in Phases 4 and 6 during the year. In addition, stockpiled ore will continue to be processed during the year.

New power purchase agreement

On May 12, 2017, Oyu Tolgoi LLC signed a new power purchase agreement (PPA) with the National Power Transmission Grid (NPTG) of Mongolia. The PPA was executed in connection with the power import arrangement between NPTG and the Inner Mongolia Power International Corporation (IMPIC). The new arrangement takes effect on July 4, 2017, subsequent to the expiry of the existing IMPIC agreement, for a term of up to six years, with possibility of early cancelation after the fourth year, if a domestic power plant is commissioned earlier. The extension is essential for Oyu Tolgoi to have secure access to power while it works with the Government of Mongolia on establishing a permanent domestic power source.

With the signing of the Southern Regional Power Sector Cooperation Agreement in August 2014, the Government of Mongolia and Oyu Tolgoi agreed to work together to source bridging power from IMPIC until a permanent domestic power source could be finalized. After approximately two years of collaborative work, the joint negotiation team from the Government and Oyu Tolgoi have secured this bridging power arrangement.

Funding of Oyu Tolgoi by Turquoise Hill

In accordance with the Amended and Restated Shareholders' Agreement (ARSHA) dated June 8, 2011, Turquoise Hill has funded Oyu Tolgoi's cash requirements beyond internally generated cash flows by a combination of equity investment and shareholder debt.

For amounts funded by debt, Oyu Tolgoi must repay such amounts, including accrued interest, before it can pay common share dividends. As of June 30, 2017, the aggregate outstanding balance of shareholder loans extended by subsidiaries of the Company to Oyu Tolgoi was $3.4 billion, including accrued interest of $0.2 billion. These loans bear interest at an effective annual rate of LIBOR plus 6.5%.

In accordance with the ARSHA, a subsidiary of the Company has funded the common share investments in Oyu Tolgoi on behalf of Erdenes. These funded amounts earn interest at an effective annual rate of LIBOR plus 6.5% and are repayable, by Erdenes to a subsidiary of the Company, via a pledge over Erdenes' share of Oyu Tolgoi common share dividends. Erdenes also has the right to reduce the outstanding balance by making cash payments at any time. As of June 30, 2017, the cumulative amount of such funding was $0.8 billion, representing 34% of invested common share equity; unrecognized interest on the funding amounted to $0.3 billion.

CORPORATE ACTIVITIES

Election of directors

The nominees set forth in the Company's management proxy circular dated March 23, 2017 were elected as directors of Turquoise Hill at the Annual Meeting of Shareholders, which took place on May 12, 2017.

NON–GAAP MEASURES

The Company presents and refers to the following non–GAAP measures, which are not defined in IFRS. A description and calculation of each measure is given below and may differ from similarly named measures provided by other issuers. These measures are presented in order to provide investors and other stakeholders with additional understanding of performance and operations at Oyu Tolgoi and are not intended to be used in isolation from, or as a replacement for, measures prepared in accordance with IFRS.

Operating cash costs

The measure of operating cash costs excludes: depreciation and depletion; exploration and evaluation; charges for asset write–down (including write–down of materials and supplies inventory) and includes management services payments to Rio Tinto and management services payments to Turquoise Hill which are eliminated in the consolidated financial statements of the Company.

C1 cash costs

C1 cash costs is a metric representing the cash cost per unit of extracting and processing the Company's principal metal product, copper, to a condition in which it may be delivered to customers net of gold and silver credits from concentrates sold. It is provided in order to support peer group comparability and to provide investors and other stakeholders with additional information about the underlying cash costs of Oyu Tolgoi and the impact of gold and silver credits on the operations' cost structure. C1 cash costs are relevant to understanding the Company's operating profitability and ability to generate cash flow. When calculating costs associated with producing a pound of copper, the Company deducts gold and silver revenue credits as the production cost is reduced as a result of selling these products.

All–in sustaining costs

All–in sustaining costs (AISC) is an extended cash based cost metric providing further information on the aggregate cash, capital and overhead outlay per unit and is intended to reflect the costs of producing the Company's principal metal product, copper, in both the short term and over the life–cycle of its operations; as a result, sustaining capital expenditure on a cash basis is included rather than depreciation. As the measure seeks to present a full cost of copper production associated with sustaining current operations, development project capital is not included. AISC allows Turquoise Hill to assess the ability of Oyu Tolgoi to support sustaining capital expenditures for future production from the generation of operating cash flows.

A reconciliation of total operating cash costs, C1 cash costs and all–in sustaining costs is provided below.

     
    Operating and unit costs
    (Three Months Ended)   (Six Months Ended)
C1 costs (Stated in $000's of dollars)   June 30, 2017   March 31, 2017   June 30, 2017   June 30, 2016
Cost of sales   188,857   194,379   383,236   445,043
Cost of sales: $/lb of copper sold   2.30   2.23   2.26   1.91
Depreciation and depletion   (75,010)   (78,288)   (153,298)   (177,856)
Provision against carrying value of copper–gold concentrate   3,807   4,655   8,462  
Change in inventory   (9,397)   (4,168)   (13,565)   (18,307)
Other operating expenses   35,638   40,657   76,295   167,331
Less:                
  – Reversal (impairment / write–down of inventory)   13,908   6,154   20,062   (21,908)
  – Depreciation   (829)   (1,030)   (1,859)   (3,801)
Management services payment to Turquoise Hill   6,615   6,083   12,698   21,559
Operating cash costs(1)   163,589   168,442   332,031   412,061
Operating cash costs: $/lb of copper produced   1.99   2.01   2.00   1.71
Adjustments to operating cash costs   24,134   27,970   52,104   65,531
Less: Gold and silver revenues   (29,924)   (40,937)   (70,861)   (342,520)
C1 costs ($'000)   157,799   155,475   313,274   135,072
C1 costs: $/lb of copper produced   1.92   1.85   1.89   0.56
                 
All–in sustaining costs (Stated in $000's of dollars)                
Corporate administration   5,662   4,492   10,154   8,659
Asset retirement expense   1,467   1,676   3,143   2,920
Royalty expenses   12,547   14,349   26,896   41,196
Non–current stockpile and stores write–down (reversal)   (13,908)   (6,154)   (20,062)   21,908
Other expenses   1,855   (627)   1,228   2,884
Sustaining cash capital including deferred stripping   20,337   11,675   32,012   47,438
All–in sustaining costs ($'000)   185,759   180,886   366,645   260,078
All–in sustaining costs: $/lb of copper produced   2.27   2.15   2.21   1.08
(1) Adjustments to operating cash costs include: treatment, refining and freight differential charges less the 5% Government of Mongolia royalty and other expenses not applicable to the definition of C1 cost.
   

Working capital

Consolidated working capital comprises those components of current assets and liabilities which support and result from the Company's ongoing running of its current operations. It is provided in order to give a quantifiable indication of the Company's short–term cash generation ability and business efficiency. As a measure linked to current operations and sustaining of the business, working capital excludes: non–trade receivables and payables; financing items; cash and cash equivalents; deferred revenue and non–current inventory.

A reconciliation of consolidated working capital to the financial statements and notes is provided below.

             
Working capital   June 30,     December 31,  
(Stated in $000's of dollars)   2017     2016  
                 
Inventories (current)   $ 237,629     $ 260,668  
Trade and other receivables     23,892       42,557  
Trade and other payables:                
  – trade payables and accrued liabilities     (277,031 )     (196,716 )
  – payable to related parties     (45,128 )     (37,248 )
Consolidated working capital   $ (60,638 )   $ 69,261  
                 

Contractual obligations

Section 9 of the MD&A discloses contractual obligations in relation to the Company's lease, purchase and asset retirement obligations. Amounts relating to these obligations are calculated on the basis of the Company carrying out its future business activities and operations as planned at the period end. As such, contractual obligations presented in the MD&A will differ from amounts presented in the financial statements, which are prepared on the basis of minimum uncancellable commitments to pay in the event of contract termination. The MD&A presentation of contractual obligations is provided in order to give an indication of future expenditure, for the disclosed categories, arising from the Company's continuing operations and development projects.

A reconciliation of contractual obligations at June 30, 2017 to the financial statements and notes is provided below.

                 
  Purchase
obligations
  Operating
leases
  Finance
leases
  Decommissioning
obligations
 
Commitments (MD&A) $ 1,061,664   $ 679,595   $ 12,738   $ 260,841  
Cancellable obligations (net of exit costs)   (863,845 )   (167,384 )        
Accrued capital expenditure   (125,667 )            
Discounting and other adjustments               (139,147 )
Financial statement amount $ 72,152   $ 512,211   $ 12,738   $ 121,694  
                         

QUALIFIED PERSON

Disclosure of a scientific or technical nature in this MD&A in respect of the Oyu Tolgoi mine was prepared under the supervision of Bernard Peters, Technical Director – Mining, OreWin Pty Ltd., B. Eng. (Mining), FAusIMM (201743), and Sharron Sylvester, Technical Director — Geology, OreWin Pty Ltd., BSc (Geol.), RPGeo AIG (10125). Each of these individuals is a “qualified person” as that term is defined in National Instrument Standards of Disclosure for Mineral Projects (NI 43–101).

SELECTED QUARTERLY DATA

       
($ in millions, except per share information)   Quarter Ended  
    Jun–30   Mar–31   Dec–31     Sep–30  
    2017   2017   2016     2016  
                     
Revenue                            
  Copper–gold concentrate   $ 203.7   $ 237.5   $ 224.6     $ 226.3  
Total revenue   $ 203.7   $ 237.5   $ 224.6     $ 226.3  
                             
Net income (loss) from continuing operations attributable to owners   $ 23.8   $ 41.0   $ 93.3     $ (31.4 )
Loss from discontinued operations attributable to owners                    
Net income (loss) attributable to owners of Turquoise Hill   $ 23.8   $ 41.0   $ 93.3     $ (31.4 )
                             
Basic income (loss) per share attributable to owners of Turquoise Hill                            
  Continuing operations   $ 0.01   $ 0.02   $ 0.05     $ (0.02 )
  Discontinued operations                    
  Total   $ 0.01   $ 0.02   $ 0.05     $ (0.02 )
                             
Diluted income (loss) per share attributable to owners of Turquoise Hill                            
  Continuing operations   $ 0.01   $ 0.02   $ 0.05     $ (0.02 )
  Discontinued operations                    
  Total   $ 0.01   $ 0.02   $ 0.05     $ (0.02 )
                             
                             
      Quarter Ended  
      Jun–30     Mar–31     Dec–31       Sep–30  
      2016     2016     2015       2015  
                             
Revenue                            
  Copper–gold concentrate   $ 329.7   $ 422.7   $ 355.6     $ 431.7  
Total revenue   $ 329.7   $ 422.7   $ 355.6     $ 431.7  
                             
Net income from continuing operations attributable to owners   $ 29.8   $ 118.9   $ 179.7     $ 44.0  
Loss from discontinued operations attributable to owners             (8.7 )     (22.8 )
Net income attributable to owners of Turquoise Hill   $ 29.8   $ 118.9   $ 171.0     $ 21.2  
                             
Basic income (loss) per share attributable to owners of Turquoise Hill                            
  Continuing operations   $ 0.01   $ 0.06   $ 0.09     $ 0.02  
  Discontinued operations                   (0.01 )
  Total   $ 0.01   $ 0.06   $ 0.09     $ 0.01  
                             
Diluted income (loss) per share attributable to owners of Turquoise Hill                            
  Continuing operations   $ 0.01   $ 0.06   $ 0.09     $ 0.02  
  Discontinued operations                   (0.01 )
  Total   $ 0.01   $ 0.06   $ 0.09     $ 0.01  
                               

KEY STATISTICS1

                                     
    1Q(4)
2016
  2Q
2016
  3Q
2016
  4Q
2016
  1Q
2017
  2Q
2017
  1H
2016
  1H
2017
  Full Year
2016
Operating results                                    
Open pit material mined ('000 tonnes)   22,867   22,716   25,739   25,615   24,333   25,193   45,582   49,527   96,938
Ore treated ('000 tonnes)   9,662   9,525   9,146   9,819   10,087   9,637   19,187   19,724   38,152
Average mill head grades:                                    
  Copper (%)   0.70   0.64   0.66   0.61   0.51   0.51   0.67   0.51   0.65
  Gold (g/t)   0.63   0.33   0.21   0.25   0.15   0.16   0.48   0.15   0.36
  Silver (g/t)   1.92   1.92   1.99   1.50   1.30   1.38   1.92   1.34   1.83
Concentrates produced ('000 tonnes)   229.5   207.1   203.2   206.7   176.0   171.0   436.6   347.0   846.6
  Average concentrate grade (% Cu)   25.1   24.9   22.9   22.0   21.6   21.8   25.0   21.7   23.8
Production of metals in concentrates:                                    
  Copper ('000 tonnes)   57.6   51.7   46.6   45.5   38.1   37.2   109.2   75.3   201.3
  Gold ('000 ounces)   144   70   37   49   25   24   213   49   300
  Silver ('000 ounces)   395   391   361   273   215   236   786   450   1,420
Sales of metals in concentrates:                                    
  Copper ('000 tonnes)   51.2   54.4   45.7   37.6   39.5   37.3   105.7   76.7   188.9
  Gold ('000 ounces)   175   95   38   39   32   23   270   55   347
  Silver ('000 ounces)   305   395   341   239   205   222   700   427   1,280
Metal recovery (%)                                    
  Copper   85.6   83.3   78.0   76.6   74.9   74.6   84.5   74.7   81.0
  Gold   72.2   69.3   62.0   63.4   48.8   47.7   71.2   48.3   68.5
  Silver   66.4   65.9   61.7   57.2   51.8   53.9   66.2   52.9   63.1
                                     
Financial results ($ in millions, unless otherwise noted)                                    
Revenue   422.7   329.7   226.3   224.6   237.5   203.7   752.4   441.1   1,203.3
Concentrates sold ('000 tonnes)   213.1   227.4   206.2   181.9   190.2   182.0   440.5   372.2   828.6
Revenue by metals in concentrates                                    
  Copper   202.0   207.9   174.2   178.5   196.6   173.7   409.9   370.3   762.6
  Gold   216.2   115.1   45.8   42.8   37.5   26.6   331.3   64.1   419.9
  Silver   4.5   6.7   6.3   3.3   3.4   3.3   11.2   6.7   20.8
Operating cash flow   195.4   161.6   24.0   18.2   88.5   51.5   357.1   139.9   399.2
Cost of sales   207.9   237.1   232.5   184.3   194.4   188.9   445.0   383.2   861.8
  Production and delivery costs   125.9   141.2   134.3   112.5   120.7   117.7   267.1   238.4   513.9
  Depreciation and depletion   82.0   95.9   88.5   79.5   78.3   75.0   177.9   153.3   345.9
Capital expenditure on cash basis   55.9   53.3   74.4   142.7   147.9   205.2   109.2   353.0   326.3
  Underground   22.6   36.5   46.7   121.0   136.4   184.7   59.1   321.1   226.8
  Open pit(2)   33.3   16.8   27.7   21.7   11.5   20.5   50.1   32.0   99.5
Royalties   22.7   18.5   13.9   13.0   14.3   12.5   41.2   26.9   68.1
Operating cash costs(3)(4)   196.6   215.5   187.8   175.4   168.4   163.6   412.1   332.0   775.3
Unit costs ($)                                    
  Cost of sales (per pound of copper sold)   1.84   1.98   2.31   2.22   2.23   2.30   1.91   2.26   2.07
  C1 (per pound of copper produced)(3)(4)   0.06   1.12   1.56   1.57   1.85   1.92   0.56   1.89   1.02
  All–in sustaining (per pound of copper produced)(3)(4)   0.66   1.55   2.00   1.90   2.15   2.27   1.08   2.21   1.48
                                     
Financial position                                    
Cash and cash equivalents ($'000,000)   1,482.2   1,478.5   1,436.5   1,417.8   1,386.3   1,378.5           1,417.8
(1) Any financial information in this press release should be reviewed in conjunction with the Company's consolidated financial statements or condensed interim consolidated financial statements for the reporting periods indicated.
(2) Open–pit capital expenditure includes both sustaining and non–underground development activities.
(3) Please refer to the NON–GAAP MEASURES section of this press release for further information.
(4) Operating cash costs, C1 and all–in sustaining unit costs for the three months ended March 31, 2016 have been revised to correctly reflect the change in inventory as reported in the Company's reconciliation of net income (loss) to net cash flow generated from operating activities.
   
   
TURQUOISE HILL RESOURCES LTD.  
Consolidated Statements of Income  
(Stated in thousands of U.S. dollars)  
(Unaudited)                            
                             
        Three Months Ended June 30,     Six Months Ended June 30,  
    Note   2017     2016     2017     2016  
                                     
Revenue   4   $ 203,668     $ 329,744     $ 441,134     $ 752,398  
Cost of sales   5     (188,857 )     (237,127 )     (383,236 )     (445,043 )
Gross margin         14,811       92,617       57,898       307,355  
                                     
Operating expenses   6     (35,638 )     (90,454 )     (76,295 )     (167,331 )
Corporate administration expenses         (5,662 )     (4,095 )     (10,154 )     (8,659 )
Other income (expenses)         2,051       (5,408 )     1,314       (6,765 )
Income (loss) before finance items and taxes         (24,438 )     (7,340 )     (27,237 )     124,600  
                                     
Finance items                                    
Finance income   7     41,478       15,388       79,384       16,774  
Finance costs   7     (41,195 )     (25,500 )     (85,003 )     (27,343 )
          283       (10,112 )     (5,619 )     (10,569 )
Income (loss) from operations before taxes         (24,155 )     (17,452 )     (32,856 )     114,031  
                                     
Income and other taxes         23,760       (6,589 )     62,177       (16,441 )
Income (loss) for the period       $ (395 )   $ (24,041 )   $ 29,321     $ 97,590  
                                     
  Attributable to owners of Turquoise Hill Resources Ltd.         23,846       29,767       64,814       148,694  
  Attributable to owners of non–controlling interests         (24,241 )     (53,808 )     (35,493 )     (51,104 )
Income (loss) for the period       $ (395 )   $ (24,041 )   $ 29,321     $ 97,590  
                                     
                                     
                                     
Basic and diluted earnings per share attributable to Turquoise Hill Resources Ltd.   19   $ 0.01     $ 0.01     $ 0.03     $ 0.07  
                                     
Basic weighted average number of shares outstanding (000's)         2,012,314       2,012,314       2,012,314       2,012,314  
The notes to these financial statements, which are available on our website, are an integral part of the consolidated financial statements.
 
   
TURQUOISE HILL RESOURCES LTD.  
Consolidated Statements of Comprehensive Income  
(Stated in thousands of U.S. dollars)  
(Unaudited)                        
                         
    Three Months Ended June 30,     Six Months Ended June 30,  
    2017     2016     2017     2016  
                                 
Income (loss) for the period   $ (395 )   $ (24,041 )   $ 29,321     $ 97,590  
                                 
Other comprehensive income (loss):                                
Items that have been / may be classified subsequently to income or loss:                                
Fair value movements:                                
  Gains (losses) on revaluation of available for sale investments (Note 16)     (1,835 )     (1,078 )     839       (3,715 )
  (Gains) losses on revaluation of available for sale investments transferred to the statement of income (Note 16)           379       (39 )     2,112  
Other comprehensive income (loss) for the period (a)   $ (1,835 )   $ (699 )   $ 800     $ (1,603 )
                                 
Total comprehensive income (loss) for the period   $ (2,230 )   $ (24,740 )   $ 30,121     $ 95,987  
                                 
  Attributable to owners of Turquoise Hill   $ 22,011     $ 29,068     $ 65,614     $ 147,091  
  Attributable to owners of non–controlling interests     (24,241 )     (53,808 )     (35,493 )     (51,104 )
Total comprehensive income (loss) for the period   $ (2,230 )   $ (24,740 )   $ 30,121     $ 95,987  
(a) No tax charges and credits arose on items recognized as other comprehensive income or loss in 2017 (2016: nil).
 
The notes to these financial statements, which are available on our website, are an integral part of the consolidated financial statements.
 
 
TURQUOISE HILL RESOURCES LTD.          
Consolidated Statements of Cash Flows          
(Stated in thousands of U.S. dollars)              
(Unaudited)                            
                             
        Three Months Ended June 30,     Six Months Ended June 30,  
    Note   2017     2016     2017     2016  
                                     
Cash generated from operating activities before interest and tax   18   $ 51,464     $ 161,644     $ 139,944     $ 357,056  
                                     
Interest received         14,336       2,052       26,674       3,394  
Interest paid         (107,173 )     (15,548 )     (119,817 )     (16,161 )
Income and other taxes paid         (2,592 )     (67,463 )     (4,478 )     (67,726 )
Net cash generated from (used in) operating activities         (43,965 )     80,685       42,323       276,563  
                                     
Cash flows from investing activities                                    
Receivable from related party: amounts deposited   20           (4,156,284 )           (4,156,284 )
Receivable from related party: amounts withdrawn   20     240,000             270,000        
Expenditures on property, plant and equipment         (205,166 )     (53,275 )     (353,042 )     (109,222 )
Proceeds from sale and redemption of financial assets               1,623       63       4,056  
Proceeds from sales of mineral property rights and other assets               1,000             2,800  
Other investing cash flows         173       49       173       73  
Cash generated from (used in) investing activities         35,007       (4,206,887 )     (82,806 )     (4,258,577 )
                                     
Cash flows from financing activities                                    
Net proceeds from project finance facility   13     3,082       4,274,321       3,082       4,274,321  
Payment of project finance fees         (1,910 )     (152,253 )     (1,910 )     (158,999 )
Cash generated from financing activities         1,172       4,122,068       1,172       4,115,322  
                                     
Effects of exchange rates on cash and cash equivalents         10       409       66       1,284  
Net (decrease) increase in cash and cash equivalents         (7,776 )     (3,725 )     (39,245 )     134,592  
                                     
Cash and cash equivalents – beginning of period       $ 1,386,285     $ 1,482,195     $ 1,417,754     $ 1,343,878  
Cash and cash equivalents – end of period         1,378,509       1,478,470       1,378,509       1,478,470  
Cash and cash equivalents as presented on the balance sheets       $ 1,378,509     $ 1,478,470     $ 1,378,509     $ 1,478,470  
The notes to these financial statements, which are available on our website, are an integral part of the consolidated financial statements.
 
   
TURQUOISE HILL RESOURCES LTD.  
Consolidated Balance Sheets  
(Stated in thousands of U.S. dollars)  
(Unaudited)                
                 
        June 30,     December 31,  
    Note   2017     2016  
                     
Current assets                    
Cash and cash equivalents   8   $ 1,378,509     $ 1,417,754  
Inventories   9     237,629       260,668  
Trade and other receivables         23,892       42,557  
Prepaid expenses and other assets         43,559       23,456  
Receivable from related party   10     1,433,160       979,544  
          3,116,749       2,723,979  
Non–current assets                    
Property, plant and equipment   11     6,781,227       6,417,031  
Inventories   9     47,381       20,783  
Deferred income tax assets   14     367,918       296,399  
Receivable from related party and other financial assets   10     2,287,189       3,002,019  
          9,483,715       9,736,232  
Total assets       $ 12,600,464     $ 12,460,211  
                     
Current liabilities                    
Trade and other payables   12   $ 341,025     $ 253,405  
Deferred revenue         40,353       36,702  
          381,378       290,107  
Non–current liabilities                    
Borrowings and other financial liabilities   13     4,147,566       4,139,143  
Deferred income tax liabilities   14     15,710       8,072  
Decommissioning obligations   15     121,694       118,903  
          4,284,970       4,266,118  
Total liabilities       $ 4,666,348     $ 4,556,225  
                     
Equity                    
Share capital         11,432,122       11,432,122  
Contributed surplus         1,557,922       1,557,913  
Accumulated other comprehensive income (loss)   16     398       (402 )
Deficit         (4,197,941 )     (4,262,755 )
Equity attributable to owners of Turquoise Hill         8,792,501       8,726,878  
Attributable to non–controlling interests   17     (858,385 )     (822,892 )
Total equity         7,934,116       7,903,986  
                     
Total liabilities and equity       $ 12,600,464     $ 12,460,211  
The notes to these financial statements, which are available on our website, are an integral part of the consolidated financial statements.
 
TURQUOISE HILL RESOURCES LTD.
Consolidated Statements of Equity
(Stated in thousands of U.S. dollars)
(Unaudited)
                                     
Six Months Ended June 30, 2017 Attributable to owners of Turquoise Hill          
 
 
 
 
 
 
 
 
 
Share capital
 
 
 
Contributed
surplus
Accumulated
other
comprehensive
income (loss)
(Note 16)
 
 
 
 
 
 
 
 
 
Deficit
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
Non–controlling
Interests
(Note 17)
 
 
 
 
 
 
 
 
 
Total equity
 
 
 
 
 
                                       
Opening balance $ 11,432,122 $ 1,557,913 $ (402 ) $ (4,262,755 ) $ 8,726,878   $ (822,892 ) $ 7,903,986  
                                       
Income for the period           64,814     64,814     (35,493 )   29,321  
Other comprehensive income for the period       800         800         800  
Employee share plans     9           9         9  
Closing balance $ 11,432,122 $ 1,557,922 $ 398   $ (4,197,941 ) $ 8,792,501   $ (858,385 ) $ 7,934,116  
                                       
Six Months Ended June 30, 2016 Attributable to owners of Turquoise Hill          
 
 
 
 
 
 
 
 
 
Share capital
 
 
 
Contributed
surplus
Accumulated
other
comprehensive
loss
(Note 16)
 
 
 
 
 
 
 
 
 
Deficit
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
Non–controlling
Interests
(Note 17)
 
 
 
 
 
 
 
 
 
Total equity
 
 
 
 
 
                                       
Opening balance $ 11,432,122 $ 1,555,774 $ (14 ) $ (4,473,360 ) $ 8,514,522   $ (718,909 ) $ 7,795,613  
                                       
Income for the period           148,694     148,694     (51,104 )   97,590  
Other comprehensive loss for the period       (1,603 )       (1,603 )       (1,603 )
Closing balance $ 11,432,122 $ 1,555,774 $ (1,617 ) $ (4,324,666 ) $ 8,661,613   $ (770,013 ) $ 7,891,600  
The notes to these financial statements, which are available on our website, are an integral part of the consolidated financial statements.
 

Forward–looking statements

Forward–looking statements made herein, including statements relating to matters that are not historical facts and statements of the Company's beliefs, intentions and expectations about developments, results and events which will or may occur in the future, constitute “forward–looking information” within the meaning of applicable Canadian securities legislation and “forward–looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward–looking statements and information relate to future events or future performance, reflect current expectations or beliefs regarding future events and are typically identified by words such as “anticipate”, “could”, “should”, “expect”, “seek”, “may”, “intend”, “likely”, “plan”, “estimate”, “will”, “believe” and similar expressions suggesting future outcomes or statements regarding an outlook. These include, but are not limited to, statements respecting anticipated business activities, planned expenditures, corporate strategies, and other statements that are not historical facts.

Forward–looking statements and information are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such statements or information. There can be no assurance that such statements or information will prove to be accurate. Such statements and information are based on numerous assumptions regarding present and future business strategies, local and global economic conditions, and the environment in which the Company will operate in the future, including the price of copper, gold and silver, anticipated capital and operating costs, anticipated future production and cash flows, and the status of the Company's relationship and interaction with the Government of Mongolia on the continued development of Oyu Tolgoi and Oyu Tolgoi LLC internal governance. Certain important factors that could cause actual results, performance or achievements to differ materially from those in the forward–looking statements and information include, among others, copper, gold and silver price volatility; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; development plans for processing resources; matters relating to proposed exploration or expansion; mining operational and development risks; litigation risks; regulatory restrictions (including environmental regulatory restrictions and liability); communications with local stakeholders and community relations; activities, actions or assessments by governmental authorities; events or circumstances that may affect the Company's ability to deliver its products in a timely manner; currency fluctuations; the speculative nature of mineral exploration; the global economic climate; dilution; share price volatility; competition; loss of key employees; additional funding requirements; capital and operating costs, including with respect to the development of additional deposits and processing facilities; and defective title to mineral claims or property. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward–looking statements and information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. All such forward–looking statements and information are based on certain assumptions and analyses made by the Company's management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward–looking statements or information.

Readers are cautioned not to place undue reliance on forward–looking information or statements. By their nature, forward–looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predicted outcomes will not occur. Events or circumstances could cause the Company's actual results to differ materially from those estimated or projected and expressed in, or implied by, these forward–looking statements. Important factors that could cause actual results to differ from these forward–looking statements are included in the “Risk Factors” section in the Company's Annual Information Form dated as of March 23, 2017 in respect of the year ended December 31, 2016 (the “AIF”).

Readers are further cautioned that the list of factors enumerated in the “Risk Factors” section of the AIF that may affect future results is not exhaustive. When relying on the Company's forward–looking statements and information to make decisions with respect to the Company, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.

Follow us on Twitter @TurquoiseHillRe

Trex Expands Into New Markets With Acquisition of SC Company and Launch of Trex Commercial Products

WINCHESTER, VA—(Marketwired – July 31, 2017) – Trex Company (NYSE: TREX), the world's number one decking and railing brand, and leader in high–performance, low–maintenance outdoor living products, today announced that it has acquired substantially all of the assets of SC Company, the country's leading manufacturer and supplier of custom architectural railings and staging solutions based in Brooklyn Park, MN. This strategic purchase expands Trex's reach into the growing commercial arena and serves as the foundation for the launch of Trex Commercial Products, a subsidiary of Trex Company.

“We have been eyeing the commercial market for some time and are thrilled to have found an ideal entryway with SC Company,” explained James E. Cline, president and CEO of Trex Company. “Beyond diversifying our business, this acquisition increases our internal capabilities with custom design and engineering, while also providing us access to — and credibility within — the contract architect and specifier community. Additionally, we foresee exciting synergies for further strengthening our position in the residential market.”

Founded in 1990, SC Company is composed of two successful product categories — SC Railing and Staging Concepts. SC Railing offers premium, custom–designed engineered railing solutions, which are prevalent in stadium and arena facilities, as well as more standardized architectural and aluminum railing systems, which target commercial and high–rise applications. Staging Concepts is a leading supplier of staging equipment for the global performing arts, sports and event production markets. Through a consistent strategy of sales expansion, end market diversification, new product development and acquisition, the company has achieved impressive growth over the past five years.

“SC Company has a deep understanding of the markets it serves and unparalleled design and engineering expertise,” noted Cline. “Like Trex, the company fosters a culture of continuous innovation and improvement. They are the absolute best at what they do and the only company among their peers with a national presence.”

SC Company completed its first railing project in 2006 at Busch Stadium in St. Louis. Since then, the company has become the go–to resource for specifiers in the construction contract arena booking jobs at such high–profile venues as Madison Square Garden in New York City; SunTrust Park in Atlanta; NASA Marshall Space Flight Center in Huntsville, AL; the U.S. Coast Guard Headquarters in Washington, D.C.; Hilton Grand Vacation Club in Myrtle Beach, SC; City Vista (retail and apartments) in San Antonio, TX; Celgene Building “L” Office in Summit, NJ; Washington Square in Minneapolis; and HealthPartners Neuroscience Center in St. Paul, MN.

“This move represents the coming together of two market leaders in complementary product categories to create an industry powerhouse with tremendous potential for growth,” said John Lewis, CEO of SC Company. “The combination of our best–in–class engineering and custom fabrication capabilities with the unrivaled Trex brand name and legacy of innovation creates a compelling value proposition. We are extremely pleased and proud to join forces with such a highly–respected and well–run company and look forward to growing together.”

The Trex Commercial Products subsidiary will operate out of the existing SC Company facilities in Brooklyn Park, MN, and Fort Mill, SC, with financial results reported under Trex Commercial Products. For more information, visit TrexCommercialProducts.com.

About Trex Company
Trex Company is the world's largest manufacturer of high performance wood–alternative decking and railing, with more than 25 years of product experience. Stocked in more than 6,700 retail locations worldwide, Trex outdoor living products offer a wide range of style options with fewer ongoing maintenance requirements than wood, as well as a truly environmentally responsible choice. For more information, visit trex.com. You also can follow Trex on Twitter (@Trex_Company), Instagram (@trexcompany) Pinterest (trexcompany), or Houzz (trexcompany–inc), “like” Trex on Facebook, or view product and demonstration videos on the brand's YouTube channel (TheTrexCo).

The Top 3 Pharma Functions Involved in Patient-Centric Initiatives (Apart from Marketing)

RESEARCH TRIANGLE PARK, NC—(Marketwired – July 31, 2017) – Apart from marketing, the most popular functions that are involved in at least 65% of surveyed patient–centric initiatives are brand team, legal/regulatory affairs and medical affairs, according to a recent study by pharmaceutical intelligence provider Cutting Edge Information.

Data recently published in the study, Patient–Centricity 2.0: Communication Strategies to Boost Patient Engagement, revealed that 68% of initiatives involve the related product's brand team. These groups are often responsible for lifecycle management, so incorporating the brand team in patient–centric initiative planning is key to strategizing the product's lifecycle and impact.

Additional data show that legal/regulatory affairs groups are involved in about 68% of surveyed teams' initiatives. Legal and regulatory affairs groups are often necessary to avoid any potential compliance issues that may arise during patient–centric initiatives, such as patient privacy.

While patient–centricity may often be considered marketing's domain, the medical affairs function is innovating and increasing its role in patient–centricity, the study found. Medical affairs teams — involved in 65% of patient–centric initiatives — may be integral to putting together educational and other medically focused materials.

“Regardless of team functions and structures, life science groups striving for patient–centricity will keep in mind that initiatives can extend past the services they provide patients,” said Adam Bianchi, senior director of research at Cutting Edge Information. “Well–rounded and cutting edge initiatives will provide patients with not only healthcare services, but also support to help them improve their quality of life beyond what a company's product can do.”

Although patient–centric initiatives involve many different functions and groups, the marketing function is arguably the backbone of many patient–focused efforts – especially branded ones. Direct–to–consumer (DTC) advertising and other branded initiatives targeted at patients often fall under this umbrella. As such, 71% of surveyed patient–centric initiatives involve marketing.

Patient–Centricity 2.0: Communication Strategies to Boost Patient Engagement, available at https://www.cuttingedgeinfo.com/research/marketing/patient–centricity/, explores different types of patient–centric programs and various drug companies' experiences to develop best practices around new strategies. The report's aggregate data and individual profiles on patient–centric programs provide insights on a wide range of initiatives. The study is derived from firsthand conversations and surveys from life sciences executives involved in patient–centric organizations. It is designed to help pharmaceutical and medical device companies:

  • Benchmark the costs to implement patient–centric initiatives, including staffing and time duration to plot successful initiatives and ensure adequate support
  • Learn effective methods for measuring ROI for patient–centric initiatives — a consistent challenge for patient–centric programs
  • Increase awareness of — and improve strategy and planning for — patient–centric initiatives
  • Determine best–fit structures for disseminating patient–centric communication

For more detailed information on Cutting Edge Information's patient–centric benchmarking research, visit https://www.cuttingedgeinfo.com/product–category/marketing/.

Image Available: http://www.marketwire.com/library/MwGo/2017/7/28/11G143374/Images/July_31_2017_–_PH222_–_The_Top_3_Pharma_Functions_–3009fe29cf4c84529d32b3a759b6baa5.jpg

Skeena Exercises Option to Acquire Snip

VANCOUVER, BC—(Marketwired – July 31, 2017) – Skeena Resources Limited (TSX VENTURE: SKE) (“Skeena” or the “Company“) is pleased to announce that it has exercised its option (the “Option“) to acquire a 100% interest in the past–producing, high–grade Snip gold property (“Snip” or the “Property“) located in the Golden Triangle of British Columbia from Barrick Gold Corp. (“Barrick“). The Option was granted pursuant to an option agreement (the “Option Agreement“) between Skeena and Barrick dated March 22, 2016. The Property consists of one mining lease and four mineral tenures totaling approximately 1,932 hectares in the Liard Mining Division. The Snip mine produced approximately 1.1 million ounces of gold from 1991 until 1999 at an average gold grade of 27.5 g/t.

Skeena's CEO, Walter Coles commented, “As a result of gaining 100% ownership of Snip, the Company will now be able to enter the historical mine workings and initiate an underground drill program. From underground, we should be able to more accurately drill into gold bearing structures that are subparallel to the Twin Vein. Also, drilling from underground will allow us to operate the project on a year–round basis.”

Per the terms of the Option Agreement, Skeena was required to issue to Barrick a total of 3,250,000 common shares of the Company of which 2,000,000 were issued at the time of signing the Option Agreement and the remaining 1,250,000 common shares were issued as of July 19, 2017. Skeena has also completed its work commitment of $2,000,000 on the Property. Barrick retained a 1% NSR royalty interest on the Property and may exercise a back–in right to purchase a 51% interest in the Property, should Skeena delineate more than 2 million ounces of gold, in return for a payment of three times Skeena's cumulative expenditures, following which the parties would form a joint venture.

Skeena posted security with the British Columbia Ministry of Energy and Mines to facilitate the transfer of ownership. Summer 2017 exploration plans at Snip will include approximately 10,000 metres of underground drilling (see news release dated March 6, 2017).

Qualified Persons

The scientific and technical information contained in this news release has been reviewed and approved by Skeena's VP of Exploration, Rupert Allan, P.Geol., a Qualified Person as defined by National Instrument 43–101.

About Skeena

Skeena Resources Limited is a junior Canadian mining exploration company focused on developing prospective base and precious metal properties in the Golden Triangle region of northwest British Columbia, Canada. The Company's primary activities are the evaluation and development of the Spectrum–GJ copper–gold project as well as exploration on the past–producing Snip gold mine, acquired from Barrick Gold, and the past–producing Porter Idaho silver mine.

On behalf of the Board of Directors of Skeena Resources Limited,

Walt Coles Jr.
President & CEO

Cautionary note regarding forward–looking statements

Certain statements made and information contained herein may constitute “forward–looking information” and “forward–looking statements” within the meaning of applicable Canadian and United States securities legislation, including, among other things, information with respect to the expected use of proceeds of the Offering. These statements and information are based on facts currently available to the Company and there is no assurance that actual results will meet management's expectations. Forward–looking statements and information may be identified by such terms as “anticipates”, “believes”, “targets”, “estimates”, “plans”, “expects”, “may”, “will”, “could” or “would”. Forward–looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and reserves, the realization of resource and reserve estimates, metal prices, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes and other matters. While the Company considers its assumptions to be reasonable as of the date hereof, forward–looking statements and information are not guarantees of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The Company does not undertake to update any forward–looking statements or information except as may be required by applicable securities laws.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Apple Chevrolet Hosts Fifth Annual Fundraiser for the Troops

TINLEY PARK, IL—(Marketwired – July 31, 2017) – Apple Chevrolet hosted a special BBQ to benefit troops, their families and fallen service members.

“One of our favorite parts of this year's USO BBQ for the Troops was seeing our employees and our customers come together for such a great cause,” said Daniel Little, the Internet Director at Apple Chevrolet in Tinley Park.

This was the fifth year in a row Apple Chevy held their USO BBQ for the Troops. This year, it was held on Saturday, July 15th from 11 am to 3 pm. During the BBQ guests enjoyed fun, games, raffles and prizes. BBQ foods and drinks were served while a DJ played music during the event. This year's special guests included Veteran's Garage with their military vehicles, Disabled Patriot Fund, Chiro One, Boy Scout Troop 378 and the local VFW. Most importantly Apple raised over $7,000 dollars in which 100 percent of the proceeds will support troops, military families and families of the fallen.

About Apple Chevy in Tinley Park

A Chicago Chevrolet dealer, they are located in the southwest suburbs of Chicago. Apple Chevrolet of Tinley Park is the dealership to trust when it comes to purchasing your next new or pre–owned vehicle. With their reputation for excellence, they will handle your purchase, financing, and ongoing service needs in the most professional and courteous manner.

Research Frontiers to Host Second Quarter 2017 Conference Call

WOODBURY, NY—(Marketwired – July 31, 2017) – Research Frontiers Inc. (NASDAQ: REFR) announced today that it will release its second quarter 2017 financial results on Thursday, August 3, 2017. In conjunction with the announcement, REFR will host a conference call at 4:30 p.m. Eastern Time on Thursday, August 3, 2017 to discuss its 2017 financial and operating results as well as recent developments.

  • Who: Joseph M. Harary, President & CEO, Seth Van Voorhees, CFO
  • Date/Time: Thursday, August 3, 2017, 4:30 PM ET
  • Dial–in Information: 1–412–717–9591
  • Questions: Email to Questions@SmartGlass.com
  • Replay: Available on Friday, August 4, 2017 for 90 days at www.SmartGlass–IR.com

About Research Frontiers:

Research Frontiers is the developer of SPD–Smart light–control technology which allows users to instantly, precisely and uniformly control the shading of glass or plastic, either manually or automatically. Research Frontiers has built an infrastructure of over 40 licensed companies that collectively are capable of serving the growing global demand for smart glass products in automobiles, homes, buildings, museums, aircraft and boats. For more information, please visit our website at www.SmartGlass.com, and on Facebook, Twitter, LinkedIn and YouTube.

Note: From time to time Research Frontiers may issue forward–looking statements which involve risks and uncertainties. This press release contains forward–looking statements. Actual results could differ and are not guaranteed. Any forward–looking statements should be considered accordingly. “SPD–Smart” and “SPD–SmartGlass” are trademarks of Research Frontiers Inc.

Advanced Group Named to Staffing Industry Analysts' List of Fastest-Growing Staffing Firms

CHICAGO, IL—(Marketwired – July 31, 2017) – The Advanced Group was recently recognized by Staffing Industry Analysts (SIA) as one of the fastest–growing staffing and talent engagement firms in the United States for 2017. The annual list ranked firms on their organic growth from 2012 through 2016. Advanced Group made the list reporting 17.7% compound annual growth in revenue. Earlier this month, Advanced Group was also recognized by SIA as one of the largest staffing firms for 2017.

Advanced Group is a diversified professional staffing, consulting, and outsourcing organization with four businesses: Advanced Clinical, Advanced Resources, Advanced RPO, and the WunderLand Group. Founded in 1988 and based in Chicago, IL, the company has over 375 employees in 16 offices throughout the U.S. Advanced Group places thousands of talented professionals each year in clinical research, HR, technology, finance, accounting, healthcare, office, marketing, and creative positions. The Advanced Group also offers RPO solutions.

A total of 110 organizations made this year's list of the fastest–growing staffing firms in the U.S. At least 15% compound annual growth in revenue from 2012 through 2016 was required to make the list.

About Advanced Group

The Advanced Group provides expertise in talent acquisition and management, consulting, outsourcing, and professional services. Founded in 1988, our businesses include Advanced Clinical, Advanced Resources, Advanced RPO, and the WunderLand Group. Awards we have won include Best of Staffing®, Chicago Tribune's Top Workplaces, Best Places to Work in Illinois, and inclusion on the Inc. 5000 list. To learn more, visit advancedgroup.com.