RE:RE:RE:financial results
I'm afraid you, guys, misunderstand the situation by blaming Mongolian government for the trouble. I thought so myself, too. You need to read the Pentwater letter to TRQ BoD and (!) thoroughly read the report you are discussing. Here's the quote: "Turquoise Hill's current estimate of its base case incremental funding requirement is$3.6 billion(June 30, 2021:$2.4 billion). The increase reflects preliminary information provided by OT LLC primarily regarding the delay to the initiation of the undercut." So, just in 3 months the projected cost of the works went up $1.2Bn . That's not something to sneeze on. And the thing is that by Investment Agreement Mongolia has to finance it's share , 34%. According to the same agreement TRQ puts the money in lieu of Mongolia, but there is an interest and pretty high. So, basically, the further it goes the more Mongolian government owes into the project. In the meantime, the ore is being mined and the concentrate is being sold, and in sizable amounts. Rio Tinto plays everybody. Not Mongolians. And that's a big problem. Just Google " GDP of Mongolia " (~$14Bn) and market capitalization of Rio Tinto ( $100Bn). Rio Tinto is bigger than Mongolia all together. And it seems like those guys from it who operate and deal in 3rd world country can do anything they pleased to do. I have no relation neither to Mongolia, nor to Pentwater, just retail investor. Sometimes in, sometimes out. But up until recently (after careful reading of the reports) I didn't realize what actually the problem was with this huge project.