Key Highlights

  • Safety performance for the Quarter continued its positive trend with annual safety targets on track to being met for 2013.
  • Mine production reached a record high for the Quarter with 447,168 tonnes mined. 
  • Processing volumes also reached a high with 433,421 tonnes of ore processed.  Recoveries steadied at 85.3% for copper and 65.0% for gold.
  • C1 cash costs for the quarter were impacted by lower copper grades, mainly at Starra 276, and higher than budgeted mining costs at both Starra 276 and Kulthor.  C1 cash costs for the quarter were US$2.71 per pound of copper.
  • Exploration successes at Kulthor included positive surface drilling results from an up-dip extension to the Kulthor mineralisation with positive intercepts indicating the potential for an additional, off-set block of high-grade mineralisation above the existing mining operation.  In addition, positive results from drilling at SWAN support the proposed study into a standalone or regional heap leach copper project.
  • The quarter closed with a cash balance of $23.9 million.

Takeover Update

On 29 August 2013, Chinese private company Shanxi Donghui Coal Coking & Chemicals Group Co., Ltd (Shanxi Donghui) launched a conditional off-market takeover offer (Offer) to acquire all the ordinary shares in Inova Resources.

Inova Resources' majority shareholder, Canadian company Turquoise Hill Resources (Turquoise Hill), had previously entered into a pre-bid acceptance deed with Shanxi Donghui, under which Turquoise Hill has agreed to accept into the Offer for 14.9% of the shares in the Company, unless a superior proposal emerges prior to accepting the Offer and Shanxi Donghui does not match that proposal.  Subsequently, Turquoise Hill informed Inova Resources that it intends to accept the remainder of its shares into the Offer once it accepts for its 14.9%.

In its response to the Offer, Inova Resources issued a Target's Statement (sent to shareholders on 27 September 2013) in which the Recommending Directors recommend that at such time as the Offer has become unconditional and Turquoise Hill Resources Limited has accepted the Offer for all of its shares, then shareholders should accept the Offer, in the absence of a superior proposal.

Shanxi Donghui's Offer has received all required regulatory approvals and Shanxi Donghui has declared the offer free from all conditions other than the 51% minimum acceptance condition.  Inova Resources has not been informed that Turquoise Hill has accepted the Offer for all of its shares and will update shareholders promptly as the Offer progresses.

The Offer will remain open until 7pm, Melbourne time on 14 November 2013, unless further extended by Shanxi Donghui.

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