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Turquoise Hill Resources Ltd. (TRQ)

NYSE - NYSE Delayed Price. Currency in USD
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7.85+7.06 (+891.41%)
At close: 4:00PM EDT
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  • G
    Gongor
    I need you guys opinion on 1 question and 1 discussion. I am not an expert on these kind of things. Firstly does anyone know Pentwater Capital Management LP, Kopernik Global Investors, LLC, Russell Investments Group, Ltd., SailingStone Capital Partners LLC, TRQ AVERAGE PRICE of their holdings.
    Secondly
    Why did Rio Tintos one of the front negotiator, Rio Tinto Mongolia CEO. Daniel Worrall have to say to Bloomberg Tv that if they are taking the share dilution path. “We have paved the way to attract the necessary funding for Oyu Tolgoi and we will seek for Mongolian governments approval for funding of OT project underground development for the near future. Also our final study of underground cost estimates will be concluded by December 2020.”
    Also reporter asked about the further fundings of the project whether it will be difficult to find more money in the current situation. And he answered “OT project world class asset also our partner Mongolian government has good reputation among the creditors. We will have no problem to attract findings to the project. We have paved the way to attract the necessary funding for Oyu Tolgoi”
  • G
    Gary
    From GLD board discussions:

    Copper demand in relation to electrification of the automobile:
    It is estimated that copper demand will increase in orders of magnitude as electric vehicles and the grid that supports their charging is built out.
    Where is this copper going to come from? When will copper shortages develop and how quickly can companies respond to the new demand? - - - (in light of 2020's 14.5% rally in copper to $3.20/lb.) it is petty clear that the demand is here now, and according to the International Copper Association, demand for electric vehicles alone will jump from 300 kilotons in 2019 to 1,700 kilotons in 2027. This does not include the power grid buildout that is estimated as triple that amount (roughly 5,000 kilotons). My back of the napkin calculations indicate that there will be a minimum of
    7,700 kilotons consumed in the production of electric vehicles and 16,000 kilotons consumed in building out the charging network. This is explosive demand at a minimum and it will affect copper pricing and create shortages and huge demand for the copper mining companies.
  • J
    JackLaTrack
    The company believes the complaints are without any merits...
    Class Action Complaint
    On October 14, 2020, a class action complaint was filed in the U.S. District Court, Southern District of New York against the Company, certain of its current and former officers as well as Rio Tinto and certain of its officers. The complaint alleges that the defendants made material misstatements and material omissions with respect to, among other things, the schedule, cost and progress to completion of the development of Oyu Tolgoi in violation of Section 10(b) of the U.S. Securities ExchangeActandRule10b-5thereunder. The Company believes that the complaint against it is without merit.

    https://www.turquoisehill.com/site/assets/files/5202/q32020productionupdatefinalat_6pm.pdf
    Bullish
  • M
    Murph
    Per the TRQ press release on Oct 1st, the RS will occur at the close today and start trading on Monday. I expect the stock to dip at the open and close higher. I also expect the stock to start trending higher based on its improving fundamentals and increasing copper and gold prices. GLTA
  • G
    Gongor
    Chile´s Codelco protest layoffs finally close down the production. Also Lundin mine suspending copper mine in Chile Candelaria production on going problemS. Chile copper mining production costs likely to increase for the future as well as resource depletion.
    Copper supply squeeze coming. Copper warehouse numbers is been low for sometime.
    OT project not going to experience worker union problem or resources depletion problem. OT national workers well paid close to Australian miners pay rate. Once full production start number of works will be 2000-4000 workers in total, Current total work force 13.000 workers 67% subcontractors for construction of underground tunnelling.
  • D
    Dennis
    $FCX conversation
    Morgan Stanley released a bullish paper on EV adoption rates yesterday. Whether we agree with the EV growth projection or not, it’s worth noting the relatively small percentage of copper demand that is attributed to EVs. I think many believe that EV demand is the main driver for future copper prices. This MS report suggests that it’s not.

    “Our global automotive team today lifts forecast battery electric vehicle (BEV) penetration rates to 13.2% globally by 2025e (from 11.6%) and 31% by 2030e (from 26%), in response to growing regulatory pressure” throughout the world.

    “Commodity impact: All the battery commodities will see demand grow over the next 10 years on the back of the rise in EV sales. We see nickel as the biggest beneficiary – EV market share of global demand is set to grow from just 3% in 2020 to 26% by 2030 – exponential growth in an industry that has seen only limited investment in new supply to date. The technological evolution suggests that cobalt will be thrifted out of EV batteries over the decade, and we cut our 2020-30 EV demand CAGR to 11% p.a (from 16%).For lithium, where EVs already account for 41% of global demand, strong global supply growth means the market will remain well-supplied. Copper, meanwhile, sees EVs reach 9.4% of demand by 2030, we estimate, compared with 2.4% today. Infrastructure requirements further boost copper demand in the sector though, and we see growth from EVs as a strong offset to increased recycling and substitution, underpinning copper's long-term growth prospects. Lastly, manganese is often overlooked given today's very small share of global demand taken by EVs, but with the development of Tesla's new manganese-rich battery there could be some tightness in the battery grade dioxide market until processing capacity adapts to meet this new source of demand.”

    #SCCO #TRQ
  • C
    Conan
    Kopernik Global one of largest minority shareholders was still adding in Q3. See page 19 of their quarterly conference call.

    https://www.kopernikglobal.com/sites/default/files/Q3%202020%20Call%20Presentation%20-%20Final.pdf
  • D
    Dennis
    Glengoolie, It’s very rude to ask questions, collect several replies, and then delete the thread. I can only repost my reply

    "If TRQ issues a rights offering, and RIO cheaply buys all the untendered TRQ shares, their percentage of TRQ ownership will increase. They already have 51% so having -- for the sake of argument – 75% will not give them any more control.
    However, if RIO subsequently negotiates a buyout of the TRQ minority, it will be cheaper to buy 25% of the equity than 49%. The buyout price per share will be negotiated with the larger minority shareholders, based on a premium over the then current price. This will be interesting.

    An early buyout of TRQ may not be RIOs goal. They may just want to increase their percentage ownership in anticipation of future UG profits. In the meantime, they have TRQ to share the risks and expenses. Of course, if things go well, then the longer they wait, the more expensive a buyout will be.
    What would you do if you were managing RIO?

    I forgot to mention that any debt incurred by TRQ is consolidated on RIO's balance sheet. There may be other reasons for RIO restricting TRQ borrowings. It's also not clear how much banks would be willing to lend TRQ without a RIO guarantee."
  • G
    Gongor
    Do contact with TRQ investors relations department GoM has been sent quite few documents for minority shareholders also there is been couple of video conference
    Shareholders should know this thing. Today parliamentary session finally discussed about OT negotiation, prime minister said OT negotiation will be concluded within next 6 months. After all GoM may not do ownership swaps. “ improvement on contract”
  • P
    Papa
    Anyone familiar with class action? How does one decide which company to file info with?
  • J
    JackLaTrack
    TRQ’s Olu Tolgoi mine has the potential to operate for 100 years from 5 known mineralized deposits. Peak operations are scheduled for 2025, when it will be the 3rd copper producer in the WORLD. In the 2025-2030 window, TRQ is expecting to produce 55,0000 tons of copper and 45,0000 ounces of gold per year. With a $1.5 billion market cap, it has a decent sized operation.
    TRQ is up 9% year to date and still selling at a PE of 4, a bargain given the rise in other gold mining stocks.
    Bullish
  • J
    JackLaTrack
    The average price Freeport received for its gold surged nearly 28% to 1,902 per ounce in the third quarter, with copper and gold sales nearly 7% higher than the company’s July estimates.
  • M
    Mark
    Is actually worse than I thought, read carefully:
    If the Re-profiling is achieved and, SSD in the amount of US$500 million is raised but no other debt
    or hybrid financing option is successfully completed, Turquoise Hill estimates that it would need to
    raise additional equity of at least US$ 1.7 billion
  • s
    sem524
    My account just showed my shares changed 10 to 1 but the price is still at .78 (US) I have an account discrepancy of 25K ....concern? Anyone else have this?
  • G
    Gongor
    OT negotiation team leader Mr.LOyuneredene said “We have been contacting with TRQ minorities so far we have a good understanding with fruitful several video conference has been made. Sole purpose of this Before the negotiation taking place we would like to work with TRQ’s minority and we make common position. We have to understand OTs investor is not only Rio Tinto. We have received astonishing number of personal letters and emails from the TRQ minority investors. Our government making sure we are working with TRQ minority and also our two parties position is very similar. And reporters goes on to ask him about Rio Tintos legal issues, United States SEC also on going tax dispute MrL.Oyunerdene “ I have no position to add on any comment on Rio Tintos foreign legal issues, about tax dispute we hired legal arbitration firm King spartan and Connex Initiative. EU international organisation for our negotiation consultancy. Also we have already 11 titles of improvement on our interest on OT project, which we already sent by paper. As you know Rio Tintos management has changed and this transitional period may delay our negotiation process for a few of months. It seems United States lawsuit on Rio Tinto news hits Mongolia big time! Reporters keep asking the same questions. So guys please do contact with Sellingstone penthouse and others. Find about the video conference about the minority.
  • W
    Wayne
    Subject: Projected TRQ Equity Dilution
    Fact’s: (1) Funding Shortfall - $3.6Billion-Source : TRQ presentation (2) Debt Reprofile : $1.4 billion plus $500 million in new debt -Source:TRQ presentation (3) Unfunded by Deduction - US$1.7 billion but six (6) quarters of free cash flow from Q 3 2020 to 4Q. 2021 should generate $1billion in free cash flow @ Gold-$1,900 per oz & Copper-$3 per lb reduces in funding by $700 million. (4) Wild Card Factor’s : (a) US Elections Nov 3 2020-Blue Wave-Incremental Stimulus-Min:$2.5Trillion boosting gold price > $2,000 -$3,000 per oz (b) Definite Cost Estimate-December 2020 confirms cost overrun @ $1.5 billion and (c) Rights Issue- Max: 80 million shares @ $6.50 do not affect shareholdings of hedge/ institutional investors as they will take up their full allotment. Rio Tinto can purchase retail investors rights shares not exercised < 15%, moving their control to 65% max, so it does not solve Rio Tinto control issue. (d) New Rio Tinto Mgt by March 2021 (e)Lawsuits and Regulatory Investigations on Rio Tinto material non disclosure of facts (f) COVID-19 slow down capex thereby giving time for further free cash flow generation to reduce deficit financing.
    Conclusion: Yes this investment has become a high risk play as engineered by Rio Tinto but going to the bitter end which is max 15-18 months away.
  • A
    Alberto
    Reverse split doesn't affect anything. It is done to avoid being delisted from NYSE and to be visible to big institutional investors and mutual funds. RS does not cause shorting. Shorting is a function of deteriorating fundamentals and fear. Since the company has good fundamentals, TRQ will be ok. The higher the share price the less impact the dilution will have. A higher share price imply less shares will be issue. The opposite is true. The lower the share price, the greater the impact of dilution because more shares will be needed to cover the lack of funds ( This favors Rio Tinto since it can buy out TRQ on the cheap or buy the shares that are not bought for small investors in the rights offering)
    Bullish
  • T
    The Hu
    Short squeeze ahead!! Mark my word!! Recently spiked of TRQ insider buying indicates Rio Tinto and GoM negotiations heading to right direction.
    Upcoming earnings and per share $5+ price going to bring many new institutions on board.
    Bullish
  • G
    Gongor
    Once average shareholders understand what is worth and not gave up for their shares easily. The bargain hunters will starting to jump the queue.
  • A
    Alex
    Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm, Announces Investigation of Turquoise Hill Resources Ltd. (TRQ) on Behalf of Investors