RE:RE:RE:major haircut
OT is so large and valuable ... and has undisclosed upside because it is also a halted camp play. Tucked away in all TRQ disclosure is “several promising geophysical targets on the JV property”.
Mongolia and Rio Tinto have played the market like a fiddle. When miners don’t promote you can almost be certain they are trying to consolidate their ownership.
Full court press - TRQ puts out another incremental cost overrun to dampen enthusiasm over the completion of the decline and being close to commencing their undercut, the Mongolians play ball by saying they are running out of patience in not being able to renegotiate what Rio says are the non-negotiable deliverables in legal and structural assurances before the financing to completion and undercut are complete.
Rio must be licking their chops. Mongolia too. Lame duck act extraordinaire!
You wouldn't know the copper and gold markets both look bright and poised for upwards pricing, except by the fact that institutional and portfolio investors looking for solid copper or gold exposure are fleeing the faked high risks of OT.
Prediction: Before OT is in full underground production, both TRQ and ETG will be bid out by Rio Tinto with the support and agreement of Mongolia to take the whole project into a 1/3 - 2/3 ownership. Too good for the public. Yes, they are bickering because Mongolian has never put up any financing for their one third and bridles at their higher credit risk thus higher financing costs. They quite rightly point out the asset itself should be considered low risk secured financing. It’s not rocket science.
But it is a crazy circus over there, being played to the hilt to clean up the TRQ and ETG floats.
One 17 year holder’s opinion only. We haven’t seen stock promotion on this property since Big Bad Bobby Friedland exited stage left in 2010 after trying a fast one on maintaining financial management control through IVN with Rio as merely prime contractor.
Do your own DD. Don’t be suckered by short term volatility here.
cg