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Turquoise Hill Resources Ltd. 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

Post by NiN777on Mar 15, 2019 8:44pm
236 Views
Post# 29494534

Q42018 results

Q42018 resultsThose results were awesome for a project of this scale delays and or cost( cost is still good) overruns are expected. That mine wont be ramped up before 2025, there could be issues in the block caving who knows, there are some inherent risks. The fact is that P/E ratio for the potential growth in revenue is laughable, the stock will keep trading sideways and Rio will make sure they keep a lid on the equity price. This mine is like a smaller Grasberg without the violence against locals, there metrics for copper seems to be rubbish, it seems that whatever gold grade they mine= operating profit. The power plant is a non-issue since it will bring the operating cost down and likely has a 10 to 20% IRR with a longer payback time. It's very hard to put a price tag on Oyu Tolgoi but when copper price shoot back up to 4$, the bottom we're in right now will look like a blip on the radar. I dont think it's a value trap otherwise rio would taken a write off and shelved it.
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