RE:RE:RE:RE: Turquoise Hill Resources Ltd > RE:RE:RE:RE:RE:RE:ZZZZZZZ
if GOM was trying to issue now the US$3.5bn left over (from parliament approval) of Chinggis Bond, then it would discover very sadly how much it would pay to raise financing from international markets, how lucky they were last year for Chinggis Bond I and how they mis-handled this extraordinary opportunity and shot themselves in the foot with all the anti-RIO saga and the licenses.
Momentum was loosing steam during 2012 thanks to SEFIL.
Chinggis Bond I was a blessing and a curse (of over-confidence) and they blew this.
Obviously there are too many people in GOM and parliament that are not listening to those with expertise and experience in financial markets and handling foreign investors.
For me, the big issue on GOM side about the feasibility study is the GOM self-inflicted increased in funding costs for Phase II.
So if GOM does want to fix things, it's relatively simple. Just willingness to act and a step by step confidence building process (that could be very fast, if there is the WILL):
* step 1: grant the licenses back free of charge to those not involved in the initial issuance process (potentially tainted with corruption) while the judicial system prosecutes those at the source. That should help restore confidence from foreign investors (those going industrial, mines,...)
* step 2: place privately some bonds (if possible MNT) to a smart money investor (SWF)
* step 3: settle with RIO all past issues related to phase I, clear and public.
* step 4: all this should impact very positively the funding cost for Phase II and make it much easier for both parties to finalize and agree.
* step 5: OT Law for phase II with 2/3 majority required to amend it. FIL created a precedent that RIO and lenders will require.