Can Turquoise Hill Overcome Consequences From Mongolia's Divided Leaders?
Gary Bourgeault • 11 Comments
Gary Bourgeault • 11 Comments
Wed, Aug. 3, 2:13 PM
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
Dec. 9, 2015, 9:47 AM
- Turquoise Hill Resources (TRQ +4.5%) bounces off 52-week lows after reporting that its Oyu Tolgoi mine in Mongolia is expected to produce 175K-195K metric tons of copper and 210K-260K oz. of gold in concentrates for 2016.
- TRQ says it expects open pit operations to mine in phases 2, 3 and 6 during the year, and begin stripping for phase 4; the reduction in gold compared to 2015 is the result of mining in lower-grade gold areas and processing lower-grade stockpiled ore.
- TRQ plans 2016 capital spending, excluding underground development, of ~$300M.
Nov. 27, 2015, 10:58 AM
- Rio Tinto (RIO -2.2%) says it is lining up project financing for a $4B expansion of its long-delayed Oyu Tolgoi copper mine in Mongolia and will make a final investment decision early next year.
- "What we need is consistency and stability and we believe we have the right environment today," Rio copper and coal chief executive Jean-Sebastien Jacques says. according to Reuters.
- Rio's Turquoise Hill Resources (TRQ +0.4%) subsidiary owns 66% of Oyu Tolgoi, with Mongolia's government owning the remainder of the project, located in the Gobi desert near Mongolia's border with China.
Sep. 2, 2015, 11:29 AM
- Rio Tinto (RIO +1.3%) owns more than half of the shares of Turquoise Hill Resources (TRQ -1.7%), and likely will buy out the shares it does not already own in the next 12-18 months, CIBC analyst Tom Meyer predicts.
- Rio will make its move once key risks from the Oyu Tolgoi copper-gold project in Mongolia are removed, the analyst says, such as financing, a cost update on Oyu Tolgoi’s underground development, and next year’s Mongolian election.
- But Meyer maintains an Underperform rating and $4 price target on TRQ in a relative valuation call, saying higher-cost, higher-leveraged copper plays such as First Quantum Minerals (OTCPK:FQVLF) and HudBay Minerals (NYSE:HBM) offer more upside if commodity prices go up in the short term.
May 19, 2015, 3:31 PM
- Turquoise Hill (TRQ +3.2%) is higher but 51% TRQ owner Rio Tinto (RIO -3.3%) is lower following yesterday's deal with Mongolia opening the way for development of a long-delayed $5B development at Oyu Tolgoi, one of the world’s largest copper deposits.
- Oyu Tolgoi is "by far the best undeveloped growth project that any of the majors has, and it’s in the best commodity - copper,” said Deutsche Bank analyst Paul Young.
- Expanding Oyu Tolgoi will significantly increase Rio’s exposure to copper, a metal that many analysts say is heading for supply constraints that should support the price, and reduce its reliance on iron ore, where growth in supply and weak demand has sent prices plummeting.
- However, Rio says production from the expansion is unlikely before 2020, and Nomura's Patrick Jones believes Rio wants to minimize its capital spending during the mining downturn and expects to see a go-slow strategy for starting capex spending for the expansion.
- Under the agreement, TRQ gives up a 2% royalty fee, accepts a change in how royalties to the state are calculated, and will pay a $30M Mongolian tax bill instead of $127M that was initially calculated; TRQ says the changes affected less than 2% of the $7.4B net present value attributed to the expansion project in a study last year.
May 19, 2015, 9:15 AM
May 18, 2015, 7:08 PM
- Turquoise Hill Resources (NYSE:TRQ) +3.9% AH after announcing a settlement with Mongolia's government (I, II) in the two-year dispute over the expansion of the Oyu Tolgoi copper and gold mine, opening the door to ~$4B in new investment.
- The focus now is expected to shift to finalizing financing for the project, as well as a feasibility study and the securing of all necessary permits for development of the underground to begin.
- TRQ owns 66% of Oyu Tolgoi, and Rio Tinto (NYSE:RIO) controls the project through its 51% stake in TRQ; the Mongolian government owns the remaining 34%.
Apr. 16, 2015, 3:57 PM
- Turquoise Hill Resources (TRQ -1.7%) is lower after TD Securities downgrades shares to Hold from Speculative Buy on valuation, even as the firm raises its stock price target to C$5 from C$4.50.
- TD says it continues to expect TRQ to reach a resolution over Oyu Tolgoi with Mongolia's government sometime in H2 2015 and the resumption of underground development in 2016; in the meantime, it expects TRQ to generate solid free cash flow in 2015, supported by strong production and low cash costs at Oyu Tolgoi.
Mar. 25, 2015, 8:58 AM
- Turquoise Hill Resources (NYSE:TRQ) +5.5% premarket after reporting in-line Q4 earnings, a big revenue increase and a strong production outlook.
- Mongolia's Oyu Tolgoi, TRQ's principal mineral resource property, produced 589K oz. of gold in concentrates and 148.4K metric tons of copper in 2014, compared to 157K oz. of gold in concentrates and 76.7K metric tons of copper in 2013.
- Based on the current mine schedule, TRQ expects Oyu Tolgoi to produce 600K-700K oz. of gold in concentrates and 175K-195K metric tons of copper during 2015, and expects production from the high-grade core of the southwest zone to resume in mid-2015.
- Rio Tinto (NYSE:RIO), which owns 51% of TRQ, +1.8% premarket.
Jan. 20, 2015, 3:49 PM
- Turquoise Hill (TRQ +6%) shoots higher following yesterday's report that the concentrator at the Oyu Tolgoi copper and gold mine in Mongolia has resumed full production following a fire in December.
- The owner of two-thirds of Oyu Tolgoi also said it had produced 148.4K metric tons of of copper and 589K oz. of gold in concentrates in 2014, in line with company forecasts.
- TRQ expects the mine to produce 175K-195K metric tons of copper and 600K-700K oz. of gold in concentrates in 2015, repeating forecasts it gave last month.
Nov. 24, 2014, 12:57 PM
- Mongolia's parliament on Friday appointed a new prime minister, more than two weeks after the ouster of his predecessor amid an economic crisis prompted in part by the stalled Oyu Tolgoi mine expansion.
- Given that the new PM had been a cabinet member for the past three years and would have been involved in discussions about Oyu Tolgoi, analysts say the change does not bode well for any real breakthrough.
- Oyu Tolgoi, 66% owned by Rio Tinto (RIO -2.2%) subsidiary Turquoise Hill (TRQ -1.1%), has the potential of adding 30% to Mongolia's GDP, but the underground expansion has been held up for years due to disputes about funding.
Sep. 22, 2014, 12:56 PM
- Turquoise Hill Resources (TRQ -1.3%) says it completed a feasibility study of a $4.9B expansion of its Oyu Tolgoi mine in Mongolia after confirming the government reduced taxes on the project.
- The latest study will need to be approved by all the mine’s stakeholders before the project can proceed; Oyu Tolgoi is operated by Rio Tinto (RIO -2.8%) and 66% owned by TRQ with the remaining 34% held by the Mongolian government.
- TRQ says the Mongolian tax authority reduced the initial tax-related charges to ~$30M from $127M but will seek further clarity about the latest findings.
Turquoise Hill Resources Ltd. explores and develops mineral properties. Its principal mineral resource property, which include Oyu Tolgoi copper-gold-silver project located in southern Mongolia; Coal Projects SouthGobi Resources is focused on exploration and development of its Permian-age... More
Sector: Basic Materials
Industry: Industrial Metals & Minerals