Can Turquoise Hill Overcome Consequences From Mongolia's Divided Leaders?
Gary Bourgeault • 11 Comments
Gary Bourgeault • 11 Comments
Tue, Aug. 30, 7:56 AM
- Mongolia's prime minister asks Rio Tinto (NYSE:RIO) to speed up construction at the giant Oyu Tolgoi copper-gold mine, as the country copes with a large budget deficit, a currency in freefall and a decline in coal and copper demand from its major customer, China.
- The Oyu Tolgoi expansion was delayed for two years, work on the project's more lucrative underground phase finally began this year, and Mongolia's new government has pledged to restore the confidence of foreign investors.
- Rio's majority-owned Turquoise Hill Resources (NYSE:TRQ) owns a 66% stake in the mine, with the Mongolian government holding the rest.
Wed, Aug. 3, 2:13 PM
Tue, Aug. 2, 5:03 PM
Mon, Aug. 1, 5:35 PM
- ACLS, AFG, AGII, AIG, AMED, AMSG, AR, ARC, AVD, BEAT, BECN, BGFV, BPI, BRKR, CALD, CALX, CAR, CENT, CERN, CHEF, CHUY, CLI, CLUB, CRAY, CSU, CXO, CZR, DEI, DVN, DXCM, EA, ELGX, ENLK, ENPH, ESE, ESIO, EXAM, FANG, FARO, FGL, FISV, FIT, FMC, FMI, FNGN, FORM, FTAI, FTV, FUEL, GHDX, GLUU, GNW, GUID, HBI, HCI, HIW, HRZN, INN, JIVE, KAR, KFRC, LOCK, LQ, MATX, MDU, MOD, MRC, MRCY, MXWL, NBR, NEWR, NFX, NOVT, NPO, NYMT, OCLR, OESX, OHI, OKE, OKS, OMI, ORA, PAA, PAGP, PAYC, PBPB, PLT, PRMW, PRO, PZZA, QRVO, QUOT, REXX, RGR, RIGL, RLOC, RPAI, RPXC, RUBI, SF, SGY, SLCA, SM, STAG, SUPN, SYRG, TMH, TNAV, TPC, TRQ, TRUP, TSRA, TX, VNOM, VRSK, VTAE, WMGI, WR, WTR, XXIA, Y, ZAGG, ZEN
Tue, Jul. 19, 10:21 AM
- Turquoise Hill Resources' (TRQ -1.1%) Oyu Tolgoi mine in Mongolia reports a decline in copper and gold production, which the company says was expected, "reflecting reduced mining in Phase 2 of the open pit, which included higher grades of both copper and gold."
- TRQ says it also expects H2 gold production to be lower as it mines areas that have reduced grades.
- TRQ's Q2 copper production fell 10.3% Y/Y to 51.7K metric tons from 55.3K in the year-ago quarter, while Q2 gold production tumbled 52% to 70K oz. from 238K oz.; however, silver production rose to 391K oz. vs. 297K oz. a year ago.
- TRQ reaffirms full-year copper production guidance of 175K-195K metric tons and gold production guidance of 255K-285K oz.
Mon, Jul. 18, 10:11 AM
- Turquoise Hill Resources (TRQ -1.9%) is initiated with a Sector Perform rating and a $4 price target at RBC Capital, which says TRQ's strong growth potential is largely reflected in the share price but would be buyers below $3.25.
- The firm believes shares offer investors exposure to the development and growth of what will be one of the largest and lowest cost copper producers in the world over the next ten years.
- TRQ is well positioned to fund the development of Oyu Tolgoi with $6B in project financing guaranteed by Rio Tinto, whose involvement as the operator minimizes development risk, RBC says.
Mon, Jun. 13, 2:05 PM
Mon, Jun. 13, 11:29 AM
- Rio Tinto (RIO +0.9%) is looking to increase its stake in Turquoise Hill Resources (TRQ +12.8%) and have the rest of the company acquired by a single strategic buyer or consortium, Sunday Times reports.
- Rio already owns 51% of TRQ and has hired Goldman Sachs as an adviser to help it privatize the business with the assistance of a partner, according to the report.
- TRQ owns 66% of Oyu Tolgoi, the huge copper, silver and gold mine in Mongolia that Deutsche Bank's Paul Young has described as, "the best undeveloped copper project globally and probably the best undeveloped asset in the industry."
Mon, Jun. 13, 9:19 AM
Wed, Jun. 8, 8:07 AM
- Jacobs Engineering (NYSE:JEC) says it has been awarded the main contract to build the $5.3B Oyu Tolgoi underground copper and gold mine in Mongolia.
- JEC is responsible for engineering, procurement and construction management services to implement the materials handling systems for the new underground mine and associated surface and underground infrastructure.
- Development of the underground mine, which was delayed in 2013 because of disputes with Mongolia's government, is key to operator Rio Tinto's (NYSE:RIO) copper growth ambitions; ~80% of the mine's value resides in the underground, with copper grades ~3x higher than the open pit, which already is in production.
- Oyu Tolgoi is a partnership between Rio Tinto, Turquoise Hill Resources (NYSE:TRQ) and the Mongolian government.
Fri, May 6, 7:49 AM
- Rio Tinto (NYSE:RIO) announces plans to move ahead with a $5.3B expansion of its Oyu Tolgoi gold and copper mine in Mongolia that is expected to become one of the world’s biggest sources of the metal.
- Ending a three-year stalemate over revenue sharing and the foreign role in resource industries, the approval was agreed by Rio, its Turquoise Hill Resources (NYSE:TRQ) subsidiary and Mongolia's government.
- The companies say development will begin within months, with first production from the underground expansion in 2020.
- The expansion is expected to more than double the copper output from Oyu Tolgoi, with the mine producing 560K metric tons/year of copper when fully built, along with gold and silver byproducts.
- Copper is languishing near its lowest price in seven years due to a supply glut, but Rio hopes that with fewer discoveries, a shortage will exist by the time Oyu Tolgoi opens.
- RIO -1%, TRQ +6.7% premarket.
- Now read Rio Tinto's Walsh wary of talk suggesting commodities rebound
Thu, May 5, 5:10 PM
Wed, May 4, 5:35 PM
- ABCO, ABTL, ACAD, ACET, AHS, AHT, AIRM, AL, ALEX, AMBR, AMH, ANET, APLE, ASYS, ATHX, ATVI, ATW, BBG, BCEI, BIO, BIOS, BLDR, BOJA, CAA, CARA, CERN, CINR, CLNE, CLVS, CMLS, CPA, CTRL, CYBR, CZR, DATA, DCT, DEPO, DIOD, DK, DKL, DV, DWA, EBS, ECOM, ED, EFC, EGAN, EGL, EGN, EGY, ELON, ENDP, ENV, EOG, ERII, ESL, EVC, EVDY, EVHC, FCE.A, FEYE, FISV, FLR, FPRX, FTD, GBDC, GEOS, GERN, GPRO, GSAT, GST, GUID, GXP, HLF, HTGC, ICPT, IMMR, IMPV, INAP, JCOM, LADR, LOCO, MAIN, MCHX, MDR, MDRX, MDVN, MELI, MHK, MITT, MNTX, MRIN, MSI, MTD, MTZ, NBIX, NGVC, NSTG, NWSA, OLED, OMED, OUT, OVAS, PACD, PCTY, PEGA, PETX, PKI, PMT, POST, PRSS, PTCT, PTLA, QLGC, RPTP, RRMS, RWT, SAAS, SEM, SEMG, SNCR, SPPI, SPWR, SPXC, SQ, SSNC, SWIR, TCRD, TEAM, TRMR, TRUE, TRQ, TRUP, TSRO, TWOU, UBNT, UEPS, UNXL, WAGE, WAIR, WEB, WIFI, WING, XNPT, Y, YELP
Fri, Mar. 18, 11:28 AM
- Turquoise Hill Resources (TRQ -1.4%) is lower after reporting better than expected Q4 earnings but a 47% Y/Y drop in revenues, and plans for ~$300M in FY 2016 capex.
- TRQ says it expects the notice-to-proceed decision for underground construction of its Oyu Tolgoi mine in Mongolia during Q2; the long-stalled underground mine was expected to boost Mongolia's economy by a third when it reaches full capacity in 2021.
- TRQ expects Oyu Tolgoi to produce 175K-195K metric tons of copper and 210K-260K oz. of gold in concentrates for 2016, with open-pit operations expected to mine in phases two, three and six during the year, as well as begin stripping for phase four.
- The company notes that ~90% of Oyu Tolgoi's expected 2016 concentrate output already has been sold.
Thu, Mar. 17, 5:21 PM
- Turquiose Hill Resources (NYSE:TRQ): Q4 EPS of $0.10 beats by $0.08.
- Revenue of $355.6M (-47.0% Y/Y) misses by $69.41M.
Wed, Mar. 16, 5:35 PM