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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

Comment by Countrygenton Mar 14, 2022 12:45pm
236 Views
Post# 34512064

RE:Hey Gent???

RE:Hey Gent???

 

It's just an offer.  There is no lockup, no ability to force it on the minority.

We'll hear from Pentwater and see if they can beat the bushes for a counter-bid.  The trump card Rio holds is it's sway over the TRQ board, but it would be a different kettle of fish if it was a BHP or Freeport Mac holding 49% and demanding representation - and in that event in any case they would de-list and go private.  

I think people are not interpreting this move correctly - what it is equivalent to is jamming a big "FOR SALE" sign on 1/3 of OT - Rio Tinto has deep pockets, they will test the waters.  My best guess is that way management can point to some other responsible major miner's upcoming offer as having set the ultimate price, which they will top.  You know they are still haunted by Alcan ... top of the market, overpaid.  Now, with copper running up,they are motivated both to move early, but also cover their rumps on valuation.  I have no idea what fair value for TRQ is, my guess is closer to $50, but considering where it came from, that's still going to be a disappointment.

cg

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