Seeking Alpha

Turquoise Hill +9.7% as inventory builds at Oyu Tolgoi

  • Turquoise Hill (TRQ +9.7%) shoots higher a day after reporting its Oyu Tolgoi copper and gold mine in Mongolia produced 76.7K metric tons of copper in concentrates during 2013, and inventories are expected to rise during Q1 2014.
  • Copper and gold in concentrates during Q4 rose 8% and 18%, respectively, Q/Q.
  • TRQ, which owns a 66% interest in Oyu Tolgoi and is in turn 51% owned by Rio Tinto (RIO +3.5%), says the mine is still producing more concentrate than it is shipping.
  • Some sales have been deferred to Q2 and Q3, and inventory levels should return to normal by the end of this year, TRQ says.
Comments (9)
  • seekingpaul
    , contributor
    Comments (15) | Send Message
     
    TRQ...up .. About time, Still good time to enter in my opinion. SP
    16 Jan, 03:30 PM Reply Like
  • wgrogers
    , contributor
    Comments (72) | Send Message
     
    A little off-topic, but I assume that the recent rights issue was largely subscribed. I was awarded only 2% of the over-subscribe quantity I requested. Does that square with your experiences?
    16 Jan, 04:02 PM Reply Like
  • dnachef
    , contributor
    Comments (37) | Send Message
     
    I think I read in one the TRQ press releases that it was fully subscribed and that Rio didn't actually have to buy up the remainder rights.
    16 Jan, 04:21 PM Reply Like
  • dreamin
    , contributor
    Comments (68) | Send Message
     
    I got the same ~2% of over-subscribe.
    16 Jan, 04:42 PM Reply Like
  • utah72
    , contributor
    Comments (96) | Send Message
     
    I got just over 10% of my oversubscription - no idea how it what determined who got what.
    16 Jan, 09:00 PM Reply Like
  • keramos
    , contributor
    Comment (1) | Send Message
     
    I got nothing of my oversubscription, but I live in France. If the controversy between the Government of Mongolia and Rio Tinto is settled TRQ will go into the skies. Keep your actions, there is more profit to come. PR
    17 Jan, 08:38 AM Reply Like
  • bullwind
    , contributor
    Comments (35) | Send Message
     
    Any thoughts what TRQ is worth by end oft 2014?
    18 Jan, 12:02 AM Reply Like
  • deekay_moneymaker
    , contributor
    Comment (1) | Send Message
     
    I expect $7-10 by end of the year. Depending on the ramp of the underground mine expansion. Also, their mines running back to normal levels + expansion.. I see why this stock won't sky rocket higher. They need to show consistant earnings this year and investors will come back IMHO.
    22 Jan, 10:45 AM Reply Like
  • utah72
    , contributor
    Comments (96) | Send Message
     
    Tend to agree with deekay - I think $8-10 is a reasonable expectation on the assumptions that issues with GOM are largely resolved without material change to the OT agreement and the Chinese/world economy continues moderate growth trends.
    22 Jan, 11:00 AM Reply Like
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