Seeking Alpha

Turquoise Hill says Oyu Tolgoi concentrate output returns to normal rates

  • Turquoise Hill (NYSE:TRQ) says Q2 concentrate production at the Oyu Tolgoi mine in Mongolia returned to normal rates after recovering from Q1 repairs, while metal production was impacted by lower-grade ore due to delayed mine advancement.
  • TRQ continues to expect Oyu Tolgoi to produce 135K-160K metric tons of copper and 600K-700K oz. of gold in concentrates for 2014.
  • Q2 concentrate sales rose significantly due to ongoing improvements in customer logistics and marketing, prompting sales to exceed production and resulting in an inventory drawdown for the quarter.
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Comments (4)
  • Laurence Lavelle
    , contributor
    Comments (314) | Send Message
     
    Anyone reading Comments at http://seekingalpha.co... knew this as 'border' issue shipments was resolved some time ago resulting in significant Q2 sales.
    15 Jul 2014, 05:45 PM Reply Like
  • marpy
    , contributor
    Comments (988) | Send Message
     
    GOM is still being a thorn in the side of TRQ and Rio Tinto. Rio Tinto has put phase 2 on hold and initiated arbitration proceedings due to tax issues with the GOM. Phase 2 is the underground development that unlocks 80% of the deposits value. TRQ has huge potential but the way things are going with the current GOM, investors may have to wait till after the next election in 2016 before they see any results.

     

    JMO
    15 Jul 2014, 09:26 PM Reply Like
  • utah72
    , contributor
    Comments (159) | Send Message
     
    I don't believe that arbitration has been initiated, just the filing of a notice of dispute which is a different animal - do you know something I don't?
    15 Jul 2014, 09:56 PM Reply Like
  • marleydog
    , contributor
    Comments (7) | Send Message
     
    There is a 60 day negotiation period before international arbitration starts. The filing occurred at the end of June so unknown question is when this 60 day period actually started.

     

    TRQ wants stable taxation policies from the GOM and is holding distribution of the underground feasibility study as a negotiation tactic. There is not really another reason to hold this up since this will also take time to review.

     

    GOM also owes $100 million back to TRQ for loan provided in 2009 that come due in October. Interested to see how this plays out.

     

    I don't see the parties making the September 30th funding deadline. I see this getting pushed out to the end of the year. Too many open issues and these parties don't have a track record of getting things done, despite the GOM recent statements about wanting to get things done. WOOF
    16 Jul 2014, 05:53 AM Reply Like
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