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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 marpincanon Mar 14, 2022 11:25am
292 Views
Post# 34511697

Tinto trying to steel TRQ

Tinto trying to steel TRQ
Under Canadian regulations, minority holders can ask for an independent evaluation. The large minority shareholders would be nuts to accept this offer without challenging it. They know what this deposit is worth and they know that Tinto is trying to steel it and they have played this game before. Tinto is also not going to put its best offer on the table first. This is no different that what Tinto did with the GOM. They kept pushing back and putting little or nothing on the table and then when push came to shove, they coughed up another 2.3 billion plus. 
    Another big miner coming in with a competing bid is an outside possibility but not a big possibility. They would be in the same boat as the minority holders - having to dance Tinto's tune and putting up with the abuse. It would be a different story if Tinto invited another miner to the show but they did not.
 
The debt assigned to TRQ is another bone of contention and may be one reason Tinto is moving at this time. It could be very reasonably argued in ciourt that a lot of this debt should land on Tinto and Not TRQ as Tinto neglegeance, incompetance and mismanagement caused it. some of these issues are currently in court and the GOM is not letting go of them in Mongolian courts either. If Tinto buys out TRQ, the issues go away in Western courts and are much easier to deal with in Mongolia.
 
Lots more to come Tinto will cough up more as what they are offering the minority amounts to what it could cost them if they lose in court with zero dollars for the assets they are buying.
 
Hold your TRQ shares and don't sell a single one as this game has a ways to go!
 
IMO
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