|Bid||0.5220 x 900|
|Ask||0.5250 x 1100|
|Day's Range||0.5127 - 0.5450|
|52 Week Range||0.4000 - 1.8400|
|Beta (5Y Monthly)||1.71|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||4.00|
(Bloomberg Opinion) -- A combination of hefty dividends and contracting output is turning the world’s second-largest miner into the poster child for a $1.5 trillion industry’s growth quandary.Rio Tinto Group announced a record $3.7 billion final dividend Wednesday, adding to $11.9 billion of cash returns already paid in 2019. Yet it produced less iron ore, copper and aluminum, leaving market prices to lift underlying earnings by 18%. Rio’s Pilbara operations stumbled early in the year. Its Mongolian copper mine, a key source of future production and the basis of a greener portfolio, is now not only sorely overdue and over-budget, but also tangled in international tax arbitration. The $86 billion mining giant isn’t alone. High dividend yields and pedestrian output have begun to define resources heavyweights that used to be known for the exact opposite. Diversified groups relied on their varied sources of cash to expand, but large-scale opportunities are scarcer than ever, and portfolios look far less diverse too, once coal and other less appealing assets have been carved off. At Rio, iron ore now accounts for three-quarters of its underlying Ebitda.For investors, it hasn’t been all bad news. Since Chief Executive Officer Jean-Sebastien Jacques took the helm in 2016, Rio’s total return including reinvested dividends adds up to an impressive 112%, outpacing most rivals.Yet much of that is due to generous payouts. For a company that digs stuff up for a living, this may not be sustainable — especially for one that aims to build a portfolio better aligned with a carbon-light global economy. It may also be an indication of just how hard it is to change. Rio paid shareholders in 2019 more than double its capital expenditure budget for the same year.One priority has been copper. Under Jacques, head of that unit until he became CEO, Rio has said it wants to add more of the red metal as its existing mines age, and will look at other green ingredients, those for rechargeable batteries and the like. Yet a unit set up to consider just such deals hasn’t sealed a single one despite considering more than 200 opportunities, and the company has suffered blow after blow in Mongolia. Its Oyu Tolgoi mine in the South Gobi accounts for only a fraction of Rio’s value today, but could dictate the company’s fortunes. So far, it’s mostly an unhelpful headache. The mine, which Rio holds through Canada-listed Turquoise Hill Resources Ltd., is one of the largest copper deposits around, and could produce an annual 550,000 metric tons of copper, almost as much as Rio produced last year, plus 450,000 ounces of gold. In the parlance of big miners, it moves the needle.Unfortunately, it also encapsulates everything that makes such projects so challenging: tough geography, messy local politics and complex geology. The cost of the largest, underground, portion has swelled to as much as $7.2 billion, and could rise again when a final estimate is published later in 2020. First production may now be be 30 months later than predicted. Fears of a cash call have dragged down Turquoise Hill shares.In the latest development, Rio announced last week it would begin arbitration proceedings to solve a tax dispute. Few arbitration deals yield significant victories — ask Barrick Gold Corp. and Antofagasta Plc, which won a $5.8 billion ruling against Pakistan last year — and they tend to irk host governments, so it’s a worrying sign. The risk is that Oyu Tolgoi becomes Rio Tinto’s own version of Freeport-McMoRan Inc.’s Indonesian pride and joy, Grasberg – wonderful in theory, nearly impossible in practice.Rio won’t drop Mongolia, and not just because of Jacques’ own attachment to the project. A copper option, however long-dated, is valuable, even if the company doesn’t yet jump in to buy out Turquoise Hill minority shareholders.But what then? Rio has manageable debt and ample cash — $9.2 billion in free cash flow in 2019, the highest level in almost a decade — and deals look cheaper as shares in copper-heavy Freeport and First Quantum Minerals Ltd. have roughly halved since 2018. Perhaps, though, not cheap enough to warrant wrestling with Freeport’s U.S. liabilities or First Quantum’s Zambian operations.Rio isn’t shrinking quite yet. It has exploration projects, and iron-ore production already did better in the second half, albeit still short of the company’s ultimate target. Yet with Oyu Tolgoi mired in arbitration and geological complexities, and the economy swiftly shifting, it might be time for Rio to consider just how creative it can get.To contact the author of this story: Clara Ferreira Marques at firstname.lastname@example.orgTo contact the editor responsible for this story: Matthew Brooker at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
MONTREAL, Feb. 17, 2020 /CNW/ - Turquoise Hill Resources today announced the submission of the Feasibility Study for the Tavan Tolgoi Power Plant (TTPP) Project to the Government of Mongolia by Oyu Tolgoi LLC. Oyu Tolgoi LLC is obliged under the 2009 Oyu Tolgoi Investment Agreement (Investment Agreement) to secure a long-term domestic source of power for the Oyu Tolgoi mine.
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. The Company also announced today that it intends to voluntarily delist its common shares from the Nasdaq Stock Market LLC (the "Nasdaq").
MONTREAL , Jan. 21, 2020 /CNW/ - Turquoise Hill Resources today announced the appointment of George Burns to the Company's Board of Directors as an independent director. Mr. Burns, President and Chief ...
Turquoise Hill announces fourth quarter 2019 production and 2020 operational and financial guidance
If you're interested in Turquoise Hill Resources Ltd. (TSE:TRQ), then you might want to consider its beta (a measure...
Some of the most active companies traded Thursday on the Toronto Stock Exchange:Toronto Stock Exchange (17,118.44, up 54.40 points)Turquoise Hill Resources Ltd. (TSX:TRQ). Basic Materials. Up two cents, or 2.3 per cent, to 89 cents on 30.43 million shares.Encana Corp. (TSX:ECA). Energy. Down 16 cents, or 2.72 per cent, to $5.73 on 16.61 million shares.Gran Tierra Energy Inc. (TSX:GTE). Energy. Up three cents, or 2.03 per cent, to $1.51 on 15.07 million shares.Wesdome Gold Mines Ltd. (TSX:WDO). Basic Materials. Down three cents, or 0.32 per cent, to $9.36 on 14.59 million shares.Bombardier Inc. (TSX:BBD.B). Industrials. Down eight cents, or 4.1 per cent, to $1.87 on 12.39 million shares.Dundee Precious Metals Inc. (TSX:DPM). Basic Materials. Down 12 cents, or 2.11 per cent, to $5.57 on 11.99 million shares.Companies in the news:Canadian National Railway Co. (TSX:CNR) Up $1.09, or 0.92 per cent, to $119.42. Canadian National Railway Co. says service is back to normal less than a month after a strike brought it to a screeching halt, but big grain backlogs remain a concern for Western farmers.This report by The Canadian Press was first published Dec. 20, 2019.The Canadian Press
MONTREAL , Dec. 11, 2019 /CNW/ - In March 2018 , the Speaker of the Mongolian Parliament appointed a Parliamentary Working Group to review the implementation of the Investment Agreement signed on October 6, 2009 . The mandate was subsequently expanded to include the Amended & Restated Shareholder Agreement signed June 8, 2011 , and the Oyu Tolgoi Underground Mine Development and Financing Plan, signed on May 18, 2015 . Upon completion of the PWG review and its report, a Resolution was submitted to the Economic Standing Committee, and subsequently passed in a plenary session of the Parliament of Mongolia on November 21 st.
Rio Tinto faces renegotiating the terms of an agreement underpinning its Mongolian copper mine project, after lawmakers on Thursday approved plans to revise the deal to make it more beneficial for Mongolia. The Oyu Tolgoi mine, Mongolia's biggest foreign investment project, has already been subject to delays and ballooning costs, leaving Mongolian lawmakers impatient for income, while Rio Tinto says it has invested billions. Rio Tinto-owned Turquoise Hill Resources has a 66% stake in the multi-billion-dollar project and the Mongolian state owns 34%, with investment terms agreed in 2015 in a deal known as the Dubai Agreement.
MONTREAL , Nov. 19, 2019 /CNW/ - Turquoise Hill Resources (TRQ) today notes Administrative Court proceedings in Mongolia with regard to a lawsuit initiated by the Darkhan Mongol Nogoon Negdel Non-Governmental Organization (NGO) relating to the Government of Mongolia's process in finalising the Oyu Tolgoi Underground Mine Development and Financing Plan (UDP). Early reports suggest the Administrative Court of first instance has upheld claims by the NGO that due process was not followed by the Government of Mongolia in finalising the UDP, although the Court's formal written ruling is expected to be released only in the coming weeks. Adherence to the principles of the Investment Agreement, ARSHA and the Underground Plan has allowed for the development of the Oyu Tolgoi mine in a manner that has given rise to significant long-term benefits to the people of Mongolia .
Turquoise Hill Resources today announced its financial results for the period ended September 30, 2019 . All figures are in U.S. dollars unless otherwise stated. MONTREAL , Nov. 12, 2019 /CNW/ - "Operationally, ...
VANCOUVER, Nov. 4, 2019 /CNW/ - Turquoise Hill Resources is pleased to announce that Shaft 2 construction is complete and has entered into the final stages of commissioning. This is a critical piece of infrastructure that will accelerate the underground development of the world class Oyu Tolgoi mine. The 48 tonne capacity cage can now be used to support logistics, transporting supplies and components for development of the mine.
Every investor on earth makes bad calls sometimes. But you have a problem if you face massive losses more than once in...
MONTREAL , Oct. 30, 2019 /CNW/ - The Company will host a conference call and webcast to discuss third quarter financial results on Wednesday, November 13, 2019 at 8:00 am EST / 5:00 am PDT . The conference ...
VANCOUVER , Oct. 15, 2019 /CNW/ - Turquoise Hill today announced third quarter 2019 production for Oyu Tolgoi and provided an update on underground development. Highlights: Q3's solid operational performance ...
VANCOUVER, Sept. 4, 2019 /CNW/ - Turquoise Hill Resources Ltd. (the "Company") (NASDAQ:TRQ - News) received an automatic notice from Nasdaq Stock Market LLC ("Nasdaq") on August 28, 2019 that the Company is no longer in compliance with Nasdaq Rule 5450(a)(1) because the Company's common shares have failed to maintain a minimum bid price of US$1.00 per share for a period of 30 consecutive business days. In order to regain compliance, the Company's common shares must have a closing bid price of at least US$1.00 for a minimum of 10 consecutive trading days.