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Turquoise Hill Resources Ltd. (TRQ)

NYSE - Nasdaq Real Time Price. Currency in USD
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0.8281-0.0113 (-1.35%)
As of 11:51AM EDT. Market open.
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  • G
    Gongor
    Soon these short term short guys will be very sorry!!!
    Lately I have been hearing behind the scenes about the progress of GoM Rio Tinto’s negotiations. The details is unclear. What they are saying is good progress and also Mongolian authority arranged a necessary specialist engineers to cross the border which heavily quarantined since Covid 19 March this year. Many of the specialist contracted to work on mining and energy mega projects. Next few weeks or months you will see big announcement from both sides or it is likely to leak early from the Mongolian side.
  • R
    RedFox
    Isn't Richard Bowley's court hearing on 28th? I hope for Rio Tinto it's... "explosive" :)
  • B
    Brad
    https://www.txfnews.com/News/Article/7058/Oyu-Tolgoi-furthers-funding-pit

    "Either way, upping DFI and international bank backing from the original project debt providers - EDC, EBRD, IFC, US Exim, EFIC, BNP Paribas, ANZ, BNP Paribas, CIBC, Credit Agricole, FMO, HSBC, ING Bank, Intesa Sanpaolo, KfW IPEX, MUFG, National Australia Bank, Natixis, Societe Generale, Standard Chartered and SMBC - is still on the cards for additional lending capacity.

    In fact, the EBRD’s director of natural resources, Eric Rasmussen said last year that the development bank was willing to provide more funding for the project. And the updated financial model - coupled with the fact the scheme has 4.5 years of construction under its belt since financial close - will have added further impetus to any DFIs and commercial banks looking to upsize their debt package stapled to the project.

    Furthermore, given all-in pricing on the 2015 deal was 600bp over Libor, there is clearly room for a margin cut and tenor extension on at least some of the debt.

    Oyu Tolgoi is a hard sell – but remove much of the political risk and the scheme becomes eminently bankable, particularly given the original extent of DFI and ECA support. And initial signs suggest there is appetite, at the very least at the EBRD, for upping that backing"
  • P
    Peter
    Copper
  • R
    RedFox
    "Liquidity and Funding 14
    Turquoise Hill has approximately $1.5 billion liquidity available at the end of June 30 2020, which
    under current projections is expected to be sufficient to meet the requirements of the Company,
    including its operations and underground development, into early 2022
    Given this improved liquidity position, Turquoise Hill has decided to defer further discussions with
    Rio Tinto regarding possible interim funding arrangements in light of its improved liquidity outlook. If
    it becomes prudent to do so, the Company may re-engage with Rio Tinto and / or third parties
    regarding possible interim funding"

    So the discussion was deferred but then not deferred???
  • M
    Mike
    I read the Memorandum of Understanding (MOU) between Rio Tinto International
    Holdings Limited (Rio Tinto) and Turquoise Hill Resources Ltd. (TRQ). It appears to be a quickly prepared document which was intended to reduce the stock price of TRQ. It did that. I would expect some lawyer should review. But, I see that it does not even include where the MOU was signed. What country law that governs the MOU is not known. There is not actual signature shown nor anyone notary the signatures. I see it as a document with no legal standing and should be ignored.
  • c
    carl
    Rio's version of release:
    LONDON--(BUSINESS WIRE)-- Rio Tinto and Turquoise Hill Resources (TRQ) have entered into a memorandum of understanding (MOU), which provides a clear pathway to progress the financing for completion of the Oyu Tolgoi Underground Project in Mongolia and address TRQ’s funding position.

    The MOU reflects the parties’ agreement that, subject to timing, availability and terms and conditions being acceptable to both parties, they will:

    pursue re-profiling of principal debt repayments with lenders under the existing project finance arrangements to better align with the revised mine plan, project timing and cash flows;
    seek to raise up to $500 million in additional lending under the existing project financing arrangements from selected international financial institutions; and
    while TRQ continues to explore other options for additional debt funding, which Rio Tinto will consider, Rio Tinto has advised TRQ that it does not currently support or expect to consent to any additional debt or other sources of funding. Rio Tinto and TRQ acknowledge that any balance of the funding required for Oyu Tolgoi to achieve completion of the underground mine will need to be met by way of a TRQ equity offering.
    Rio Tinto chief executive of Copper & Diamonds, Arnaud Soirat, said “The MOU agreed today with TRQ provides a clear funding pathway for the completion of the Oyu Tolgoi Underground Project. We will continue working with TRQ and the Government of Mongolia to progress the underground project, which has the potential to unlock the most valuable part of the mine for the benefit of all stakeholders.”

    Canadian early warning disclosure

    Rio Tinto currently beneficially owns 1,021,966,440 common shares of TRQ, representing approximately 50.8% of the issued and outstanding common shares of TRQ. Rio Tinto also has anti-dilution rights that permit it to acquire additional securities of TRQ so as to maintain its proportionate equity interest in TRQ from time to time.

    As the subscription price for and the amount of any equity offering is not determinable at this time, the number of TRQ common shares Rio Tinto will beneficially own following closing of any such equity offering cannot be determined at this time.

    Except in connection with any such equity offering, Rio Tinto has no present intention of acquiring additional securities of TRQ. Depending upon its evaluation of the business, prospects and financial condition of TRQ, the market for TRQ’s securities, general economic and tax conditions and other factors, Rio Tinto may directly or indirectly acquire or sell some or all of the securities of TRQ.

    This announcement is authorised for release to the market by Rio Tinto’s Group Company Secretary.
  • P
    Peter
    London copper gained more ground on Monday, climbing to its highest in more than two years, as a recovery in China's industrial production underpinned prices.
    London copper gained more ground on Monday, climbing to its highest in more than two years, as a recovery in China's industrial production underpinned prices.
    uk.reuters.com
  • c
    carl
    I gave a full disclosure last week after this tanked and I trimmed a bit. Full disclosure: investing is hard because of emotional attachments to money and the fear of being wrong. Losing money is easy, just believe you are right all the time.
    Today I added 6 figures of shares. I figured I'd match Ulf. One can argue that the insider buys weren't a lot, I can concede that, but I doubt that they were tossing loonies to the wind in some conspiracy with Rio. If you believe in this why would Rio have insider buy? They want it to go down, right?
    TRQ management has down a lot inspite of Rio's possible wishes that the stock tanks. They came up with plans to bring gold forward and announced such.
    It was simply bad timing for try and likely spite in on the part of Rio management to state they want equity funding first. Equity funding didn't work to Rio's advantage the last time. They didn't scoop up many inscribed shares. They won't this time either.
    The whole thing is a risk to Rio. New management might well come in and say "Why are we doing this for a 100 million share cheap, when lawyers will cost us $200 million?" It comes down to what was the real cost od blowing up that cave?
    Bottom line these insider buys are rare in this stock and telling of a bigger picture, one that they have better clarity than anyone of us on the outside.
    With every dime this goes up, I'll add 50K in shares!
  • R
    Ronnie
    Fed Reserve indicated interest rate is going to stay near zero for a few more years.
    Why can’t they take advantage of this low interest rate and restructure the loan?????
  • P
    Peter
    To the extent that the funding gap to complete the Oyu Tolgoi underground project is not eliminated
    by the Re-profiling, the raising of additional SSD, and additional debt and / or hybrid financing,
    Turquoise Hill and Rio Tinto have acknowledged that the balance of the funding gap will need to be
    satisfied by way of a TRQ equity offering.
  • J
    JOHN
    Has TRQ stopped trading is it a problem at my end?
  • c
    carlos
    "To the extent that the funding gap to complete the Oyu Tolgoi underground project is not eliminated
    by the Re-profiling, the raising of additional SSD, and additional debt and / or hybrid financing,
    Turquoise Hill and Rio Tinto have acknowledged that the balance of the funding gap will need to be
    satisfied by way of a TRQ equity offering."
  • J
    Joe
    The whole point of the share consolidation was that shares needed to trade over $1.00 for over 30 days, shares moved over $1.00 in the past week only for RIO and TRQ to kill the run back to $0.80cents and non compliant again.

    Mr. Ulf Quellmann reports:

    MONTREAL, Feb. 14, 2020 /CNW/ - Turquoise Hill Resources Ltd. (the "Company") announced today that it will be seeking shareholder approval to implement a consolidation of its outstanding common shares. Reasons for and details of the share consolidation will be included in the Company's Management Proxy Circular, which will be mailed to the Company's shareholders in advance of the Company's 2020 Annual Meeting of Shareholders.
  • J
    JOHN
    SEDI filings for
    SEDI filings for
    ceo.ca
  • G
    Gongor
    Hey fellow shareholders, I have contacted with deputy prime ministers L.Oyunerden’s office. And I explained the current situation and also I have told them there is many international investors TRQ shareholders that want contact with GoM and they gave me their email address. Deputy prime ministers L.Oyunerden is the head of GoM OT negotiation team. Also USA Harvard Kennedy school grad. If you guys send a sensible email explaining why GoM need to support TRQ minority shareholders when they negotiate. Make sure you guys put TRQ’s minority shareholders real believer of Mongolia and OT projects and real international globally located all sort of institutional and individual investors and stuff like that. You guys know better. Deputy prime minister repeatedly saying that we are working with the minority shareholders of TRQ we would like to hear. And in Mongolian parliamentary session few weeks ago MP H.Temuujin said “ Our government really need to hear TRQs minority shareholders. They are the real investors who we should encourage to invest in Mongolia .” To the counter speech to that the deputy prime minister said “ I totally agree. We will be closely working with all OT investment parties. We will listen to TRQs minority.” So definitely GoM will hear minority shareholders story which can be only plus to the minority shareholders. Please do write formal email. Here is the email - oyunerdene@parliament.mn
  • J
    Joel
    I think the market is underestimating how much of the mine construction costs can be covered by cashflow from the open pit mine. I made a spreadsheet based on $3.00/lb copper and $1900/oz gold (silver and moly are not financially significant regardlses of price) and while I'm sure I missed a few things I have them cashflowing $1 billion over six quarters (last two quarters of 2020 and all of 2021). Their remaining US$ 1.7 billion shortfall is "based on the facts, circumstances and the market environment which formed the basis for the assumptions underlying Turquoise Hill’s most recent public disclosures" that is the Aug 28th technical report. That report uses the following prices for 2021: $2.67/lb copper, $1694/oz gold, $17.64/oz silver. Those are all under current market prices. Also $1.2b of that $1.5b shortfall is 2022-2024, so if prices stay high they can cover a lot of it with cashflow.

    It is possible they hit further delays, metal prices fall, or they have already factored higher metal prices in. But it also seems quite possible that the additional debt they have available plus cashflow at current metal prices could put this thing through to volume production.

    Cashflow spreadsheet for reference:
    https://docs.google.com/spreadsheets/d/1imdi7m463bf5u8FnLaxW1ZIbm2hXjWDCLAri80mPHBU/edit?usp=sharing
    Sheet1 2Q 2019,3Q 2019,4Q 2019,1Q 2020,2Q 2020,3Q 2020,4Q 2020,1Q2021,2Q2021,3Q2021,4Q2021,next 6Q combined Copper Revenue $,$232,400,000.00,$221,700,000.00,$258,525,454.85,$270,707,282.57,$279,781,269.69,$279,781,269.69,$279,781,269.69,$279,781,269
    Sheet1 2Q 2019,3Q 2019,4Q 2019,1Q 2020,2Q 2020,3Q 2020,4Q 2020,1Q2021,2Q2021,3Q2021,4Q2021,next 6Q combined Copper Revenue $,$232,400,000.00,$221,700,000.00,$258,525,454.85,$270,707,282.57,$279,781,269.69,$279,781,269.69,$279,781,269.69,$279,781,269
    docs.google.com
  • B
    Brad
    https://www.montsame.mn/en/read/236780

    "The report recommends key policy actions to build the foundation of a diversified and sustainably growing economy.

    These include:

    Implement countercyclical fiscal and monetary policies – supported through transparent fiscal rules, an independent fiscal council, a market-driven exchange rate, and a well-functioning stabilization fund – to smooth consumption over the business cycle rather than maximize current consumption.

    Undertake bold investment climate reforms to enhance competition, secure investor rights, and create a more level playing field that enables productive firms to invest and grow.

    Move away from the mindset of diversifying products to expanding endowments, especially in terms of better utilization of Mongolia’s young and educated, especially female, labor force.

    Accelerate the implementation of fundamental governance reforms (especially on the government effectiveness and control of corruption) to reduce political interference, increase transparency, and improve regulatory quality throughout the economy."
  • C
    Clip
    as an investor, are you aware of the following:
    History:

    · Rio Tinto paid over $6b for its stake in Ivanhoe (since renamed Turquoise Hill) and during the acquisition of this position, Rio Tinto negotiated with Ivanhoe management and achieved the following contractual rights:

    · Rio Tinto is the operator of the mine with a “cost plus” contract to build the underground. This means, irrespective of the cost overruns or delay, TRQ has no recourse.

    · For all funding of the Underground operations, TRQ must have Rio Tintos consent. Which means, to fund the outstanding balance of the underground mine, irrespective of what TRQ wants to do, it still requires Rio Tinto consent.

    All of the above information is in the public domain and on our website for any investor to see during normal course due diligence.

    Update:

    I assume you read the following statement in Rio Tinto’s press release:

    “Rio Tinto advised TRQ that it does not currently support or expect to consent to any additional debt or other sources of funding.”

    Thus, you would understand that after Rio Tinto advised us of this, we were obligated to disclose this to the market. I’m sure you understand and respect our need to adhere to all market regulations.

    If you look at our press release you will see that TRQ has stated that it prefers debt or hybrid (streaming) solutions over equity and will continue to prioritize these sources of funding and pushback any potential equity offering as far as possible. This is exactly what our shareholders want and is exactly what TRQ management is trying to do. However, you have to understand and accept the reality of the contractual rights Rio Tinto negotiated years ago.

    I hope I have provided some clarity.

    For my edification, were you aware of Rio Tinto’s contractual rights and that TRQ is obligated to seek Rio Tinto consent for any funding solution….and that Rio Tinto has twice before backstopped a Rights Offering for TRQ?

    Note: I do my best to respond to all shareholders and answer their questions to the best of my ability, as long as they are respectful.



    Regards,