May 14, 2011 / 1:27 AM / 7 years ago

UPDATE 1-Ivanhoe Mines posts wider-loss; Oyu Tolgoi on-track

* Sees Oyu Tolgoi commercial production H1 2013

* Q1 net loss 79 cts/shr vs loss 43 cts/shr

* Q1 revenue up 45 pct to $20.2 mln

May 13 (Reuters) - Ivanhoe Mines (IVN.TO) posted a wider net loss in the first quarter, due largely to a change in the fair value of a derivative, but the miner reiterated that it expects commercial production from the Oyu Tolgoi project in the first half of 2013.

Ivanhoe Mines reported a net loss of $492.5 million or 79 cents a share, compared with a net loss of $193.9 million, 43 cents a share last year.

Revenue at the company rose 45 percent to $20.2 million.

During the quarter, the company was hurt by a $432.5 million change in the fair value of a derivative.

Construction at the Oyu Tolgoi project, which Ivanhoe is developing in partnership with Anglo-Australian miner Rio Tinto (RIO.AX) (RIO.L), continues to advance and key elements of the project remain ahead of schedule, Ivanhoe said.

Ivanhoe Mines and Rio Tinto are working together to achieve a project-finance package for Oyu Tolgoi, and are targeting to have in place during the second half of 2011. The mine is one of the world’s biggest untapped copper-gold deposits.

Shares of Ivanhoe Mines closed at C$23.30 on Friday on the Toronto Stock Exchange. (Reporting by Thyagaraju Adinarayan; editing by Carol Bishopric)

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