The Canadian Press writes that,
VANCOUVER — Ivanhoe Mines Ltd. (TSX:IVN) had a US$127.5-million profit in the second quarter on gains from the sale of its stake in Jinshan Gold Mines Inc. in China, the company announced Thursday.
Best known as lead developer of the huge Oyu Tolgoi copper-gold discoveries in Mongolia, Ivanhoe Mines had a net loss of $74.2 million in the second quarter of 2007.
On a per-share basis, Ivanhoe went from a loss of 20 cents in the second quarter of 2007, to a profit of 31 cents per share.
The year-over-year improvement was the result of the $201.7 million gain on sale of long-term investments in Jinshan Gold Mines Inc., partially offset by exploration expenses.
In the quarter, Ivanhoe recognized $67.3 million in exploration and development activities, compared with $79.1 million in the second quarter of 2007.
The majority of the $67.3 million was spent on the Mongolian projects ($53.4 million), as well a significant amount at Cloncurry ($10.8 million) in Australia.
Chief executive Chairman Robert Friedland said subsidiaries SouthGobi Energy Resources and Ivanhoe Australia had achieved notable milestones in the company’s efforts to expose the value of the resource projects assembled by Ivanhoe.
“We have seen SouthGobi Energy Resources . . . become the newest coal producer in Mongolia and report impressive, ongoing exploration success, greatly increasing its high-quality coal resources as it prepares to make its first export shipments to buyers in China,” Friedland said.
He added that Ivanhoe has just completed an initial public offering of its Australian assets, providing capital to advance several projects.
“We believe that Ivanhoe Australia will become a significant copper and gold producer in a district that also has significant additional potential for uranium, zinc, silver and cobalt,” Friedland said.
Ivanhoe Australia shares now are trading on the Australian Stock Exchange under the symbol IVA.
Shares of Vancouver-headquartered Ivanhoe Mines shares traded in Toronto at C$11.62, up seven cents from the previous close.