Rising copper prices are positive news for Turquoise Hill

Turquoise Hill (TRQ: TSX & NYSE) today announced that it had raised $ 264.4 million in the 3rd quarter, up 26.4% from $ 209.2 million in the 3rd quarter.

The company's shares rose 15% to C $ 13,219 per share on noon ET. Copper revenue increased 29.5% due to higher sales volumes and an average copper price increase of 12.5%. Gold revenues increased 16.6%, driven by a 29.7% increase in the average price of gold, which was partially offset by lower sales volumes of gold in concentrate. Income for the period was $ 161.7 million compared to $ 45.1 million for the third quarter of 19.

That difference was primarily due to an increase in income of $ 55.2 million over the third quarter of 19 as well attributable to additional deferred tax assets of $ 86.1 million recorded in Q3'20 versus Q3'19. Income attributable to the owners of Turquoise Hill was $ 128.6 million, or $ 0.64 per share, for the 3rd quarter compared to $ 71.7 million, or $ 0.36 per share, in the 3rd quarter. Earlier this month, Turquoise Hill commenced arbitration proceedings against its largest shareholder, Rio Tinto, to seek "clarity" on the financing of Oyu Tolgoi, one of Rio's largest growth projects.

Turquoise Hill owns 66% of Oyu Tolgoi, one of the largest copper-gold-silver mines in the world, which went into production in early 2013 and is now supplying concentrate to customers in China.