Turquoise Hill Resources Ltd. T.TRQ

Down 25% in premarket

[ngtraderng]

Rio Tinto finally pulled the rug from under the minority shareholders and will be diluting them. With rising copper and gold prices there was no need for this.

[trebuh16]

Hi, What I understand is 500MM is the last borrowing from a Bank. The balance will be cash-flow or equity. That' s fine with me. Trebuh

[grape562000]

There are currently over 2 billion shares outstanding (not float, total shares). The 'balance' TRQ needs to raise is $1.7B. In theory, this could become a 100% dilution. On the other hand, TRQ is trading at 20% of book value, so it's hard to know what the stock price will be once this is over - but I suspect pretty close to where it is now. Then, assuming $2B in earnings next year /

[trebuh16]

Hi,  I am expecting a minimum of 350 MM and up to 600 MM of cash-flow per quarter starting with Q3 2020 for the next 18 mo. I am not to worry with the equity part of the financing. TRQ is a train. Choo choo... it's coming. Trebuh

[Paray99]

Luckily I sold I yesterday and now will wait some time before getting in!

[fruitvale3067]

Grape, what about a copper/gold streaming deal for the remaining $$$. Then no dilution to shareholders. I sure a streaming company or two would love to get a piece of the Oyu Tolgi underground action. 

[grape562000]

Personally, I agree with you that with this much debt to be financed, a streaming deal could be a good idea. It really depends on the terms. Pretium had a streaming deal that they were able to buy back and has been repaid. Others are life of mine. At the end of the day, equity financing is easy for the company, but horrible in this case for shareholders. It really depends whether TRQ has their