TURQUOISE HILL RESOURCES LTD.

Second Quarter Report

June 30, 2022

Financial Statements and MD&A

Turquoise Hill Resources Ltd.

Condensed Interim Consolidated Financial Statements

June 30, 2022

(Unaudited)

TURQUOISE HILL

TURQUOISE HILL RESOURCES LTD.

Consolidated Statements of Income

(Stated in thousands of U.S. dollars, except share and per share amounts) (Unaudited)

Three Months Ended

Six Months Ended

Note

June 30,

2021

June 30,

2021

2022

2022

Restated -

Restated -

Note 2 (c)(i)

Note 2 (c)(i)

Revenue

4

$

402,037

$

329,800

$

804,688

$

856,346

Cost of sales

5

(219,416)

(85,511)

(394,427)

(241,155)

Gross margin

182,621

244,289

410,261

615,191

Operating expenses

6

(58,407)

(73,276)

(123,413)

(129,764)

Corporate administration expenses

(13,376)

(8,525)

(28,996)

(21,568)

Other expenses

19

(24,445)

(14,610)

(22,769)

(27,787)

Income before finance items and taxes

86,393

147,878

235,083

436,072

Finance items

Finance income

7

1,165

607

1,887

1,897

Finance costs

7

(4,017)

(1,596)

(6,748)

(3,231)

(2,852)

(989)

(4,861)

(1,334)

Income from operations before taxes

83,541

146,889

230,222

434,738

Income and other taxes

13

9,801

(19,047)

257,420

25,253

Income for the period

$

93,342

$

127,842

$

487,642

$

459,991

Attributable to owners of Turquoise Hill Resources Ltd.

$

82,646

$

102,859

$

357,864

$

339,574

Attributable to owner of non-controlling interest

10,696

24,983

129,778

120,417

Income for the period

$

93,342

$

127,842

$

487,642

$

459,991

Basic and diluted earnings per share attributable

$

0.51

$

1.69

to owners of Turquoise Hill Resources Ltd.

$

0.41

$

1.78

Basic weighted average number of shares outstanding (000's)

201,231

201,231

201,231

201,231

The accompanying notes are an integral part of these consolidated financial statements.

2

TURQUOISE HILL RESOURCES LTD.

Consolidated Statements of Comprehensive Income

(Stated in thousands of U.S. dollars) (Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2022

2021

2022

2021

Restated -

Restated -

Note 2 (c)(i)

Note 2 (c)(i)

Income for the period

$

93,342

$

127,842

$

487,642

$

459,991

Other comprehensive income:

Items that will not be reclassified to income:

(3,595)

162

Changes in the fair value of marketable securities at FVOCI

2,631

4,887

Other comprehensive income for the period (a)

$

(3,595)

$

2,631

$

162

$

4,887

Total comprehensive income for the period

$

89,747

$

130,473

$

487,804

$

464,878

Attributable to owners of Turquoise Hill

79,051

105,490

358,026

344,461

Attributable to owner of non-controlling interest

10,696

24,983

129,778

120,417

Total comprehensive income for the period

$

89,747

$

130,473

$

487,804

$

464,878

  1. No tax charges and no credits arose on items recognized as other comprehensive income or loss in 2022 (2021: nil). The accompanying notes are an integral part of these consolidated financial statements.

3

TURQUOISE HILL RESOURCES LTD.

Consolidated Statements of Cash Flows

(Stated in thousands of U.S. dollars) (Unaudited)

Three Months Ended

Six Months Ended

Note

June 30,

2021

June 30,

2021

2022

2022

Restated -

Restated -

Cash generated from operating activities

Note 2 (c)(i)

Note 2 (c)(i)

16

$

304,767

$

553,003

before interest and tax

$

315,376

$

438,010

Interest received

920

678

1,469

1,853

Interest paid

(84,771)

(84,511)

(85,580)

(111,022)

Income and other taxes paid

18

(2,461)

(2,525)

(2,477)

(358,648)

Net cash generated from operating activities

$

229,064

$

218,409

$

351,422

$

85,186

Cash flows from investing activities

Expenditures on property, plant and equipment

$

(260,941)

$

(227,356)

$

(490,807)

$

(477,643)

Purchase of commodity put options

-

-

-

(29,907)

Proceeds from pre-production revenues

-

-

-

-

Other investing cash flows

(1)

62

(1)

62

Cash used in investing activities

$

(260,942)

$

(227,294)

$

(490,808)

$

(507,488)

Cash flows from financing activities

Repayment of project finance facility

$

(41,826)

$

(21,744)

$

(41,826)

$

(21,744)

Proceeds from bank overdraft facility

-

-

-

8,500

Repayment of bank overdraft facility

-

(8,500)

-

(8,500)

Payment of lease liability

(2,740)

(166)

(5,152)

(295)

Cash used in financing activities

$

(44,566)

$

(30,410)

$

(46,978)

$

(22,039)

Effects of exchange rates on cash and cash equivalents

(116)

(165)

470

(207)

Net decrease in cash and cash equivalents

$

(76,560)

$

(39,460)

$

(185,894)

$

(444,548)

Cash and cash equivalents - beginning of period

$

584,962

$

718,533

$

694,296

$

1,123,621

Cash and cash equivalents - end of period

$

508,402

$

679,073

$

508,402

$

679,073

The accompanying notes are an integral part of these consolidated financial statements.

4

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Turquoise Hill Resources Ltd. published this content on 04 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2022 22:27:17 UTC.