RE:RE:RE:RE:Now Sailingstone Joins the ChorusMongolian has always been a dilemma from day one. We needed a heavy on the side of development and financing because the Mongolians left alone would have imploded the project with crazy pirate schemes.
So so it was Rio. I believe they overplayed their hand with TRQ and ETG in the zeal to make OT put as much less than its potential. Man, they could have bought the whole project out for relative peanuts five years ago.
Now we have major tailwinds from metals prices and the post-Covid world is going to use infrastructure and new greener capital projects to stimulate the global economy - hello copper up front, hello gold as a hedge in zero rate, exploding balance sheet economies.
And, this bickering and threats of minority shareholder action at TRQ is going to give so much promotional free media space to ETG ... its not all bad situationally.
The bummer is the stupid deal the Mongolians struck with their insistence of being equity holders instead of just ensuring themselves a fat royalty with no liabilities. Now, as they have compounded their debt because they have never put up a penny ... how do you get them some revenue in the next decade other than through their general revenue from payroll, other secondary economic activity? Can Rio fairly price TRQ or ETG without setting off a firestorm in Ulan Bator? On the other hand, once the revenues start flowing, especially if the NSR’s are what they should be ... the jig is going to be up as people realize the leverage to copper and gold at OT.
Maybe 2021 will be a pretty good year around here.
cg