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Turquoise Hill Resources Ltd. TRQ


Primary Symbol: T.TRQ

Turquoise Hill Resources Ltd is a global mining company that primarily mines copper, gold, and coal in the Asia-Pacific region. The company holds a 66% interest in Oyu Tolgoi, one of the world's largest copper-gold-silver mines, which ships concentrate to customers in China. Oyu Tolgoi is located in the South Gobi region of Mongolia, approximately 550 km south of the capital, Ulaanbaatar, and 80 km north of the Mongolia-China border. The company also holds interests in companies that mine...


TSX:TRQ - Post by User

Comment by Formulatoron Jun 14, 2016 7:38am
209 Views
Post# 24962864

RE:RE:RE:RE:RE:RE:RE:More

RE:RE:RE:RE:RE:RE:RE:MoreThis is my take on the whole situation.  OT owes TRQ about $4B+, this is the shareholder loan that TRQ raised and lent to OT for the initial build out.  This must be paid for before any dividends are paid.

Fast forward 5 years and the underground is producing ore, profits go first to paying back the shareholder loan and mine starts generating some big cash flow numbers.

Reverse to current day,Mongolia realizes now that this structure does not work for them, return via dividend takes too long because loans need to be paid off first.  If RIO tries to privatize Trq, the Mongolian govt will likely ask RIO to buy out their equity in exchange for higher royalties.

I think the play will be Rio taking OT private and then closing the books and operations to the rest of th world so o one will know what lies beneath the current ore body.  ETG will be taken out but later because OT has enough to keep producing for 50+ years before they need to go expand outside.  NPV 50 yrs out is not a lot.

My play is hold TRQ until buy out, then flip to ETG and wait.  
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