Ivanhoe Mines reports Q3 loss of US$69.8M compared with $88M loss a year ago

THE CANADIAN PRESS

VANCOUVER, B.C. - Ivanhoe Mines Ltd. (TSX:IVN) reported Friday a third-quarter loss of US$69.8 million compared with a loss of $88 million a year ago.

The mining company, which keeps its books in U.S. dollars, said the loss amounted to 18 cents per share for the quarter ended Sept. 30 compared with a loss of 23 cents per share a year ago.

Revenue totalled $11.9 million compared with no revenue reported in the same quarter last year.

Ivanhoe is developing the Oyu Tolgoi project in Mongolia with London-based partner Rio Tinto (NYSE:RTP).

Last month, Ivanhoe, Rio Tinto and the Mongolian government officially signed an investment agreement at a special ceremony in the country.

The agreement on the Oyu Tolgoi had been renegotiated repeatedly after opponents complained it shortchanged Mongolia, which had to repeal a windfall profits tax in August before the companies agreed to go ahead.

Mongolia will own 34 per cent interest in the project, while Ivanhoe will retain a controlling 66 per cent interest.

Mongolia also has the option to purchase an additional 16 per cent interest, under certain conditions and time frames.