The share price of Vancouver-based Turquoise Hill tanked to a new one-year low on the TSX and NYSE exchanges on Tuesday, following news of a cost overrun and delays at its major mine project in Mongolia.
The stock closed 43% down at C$0.79 a share in Toronto and at $0.60 a share in New York, after hitting new one-year lows on both exchanges.
The company, which is 50.8% owned by Rio Tinto, reported late the previous day that first production from the underground mine at Oyu Tolgoi would be delayed by 16 to 30 months, compared with the original feasibility study.
The development spend for the project could also increase by between $1.2-billion and $1.9-billion, over the $5.3-billion already disclosed.
The first sustainable production from Oyu Tolgoi underground is now forecast to be between May 2022 and June 2023.
The opencast mining operations at Oyu Tolgoi had a solid second quarter, with copper production of 39 156 t, a decrease of 0.6% year-on-year. Gold production jumped 43.7% to 71 825 oz.