01:12:36 EDT Fri 29 Mar 2024
Enter Symbol
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Turquoise Hill Resources Ltd
Symbol TRQ
Shares Issued 2,012,309,019
Close 2015-09-02 C$ 3.82
Market Cap C$ 7,687,020,453
Recent Sedar Documents

Post says Turquoise Hill awaits Rio Tinto buyout

2015-09-03 09:29 ET - In the News

The Financial Post reports in its Thursday edition the relationship between Rio Tinto and Turquoise Hill Resources ($3.82) is complicated. The Post's Peter Koven writes Turquoise Hill controls the giant Oyu Tolgoi copper-gold project in Mongolia, and Rio Tinto controls more than half of Turquoise Hill's shares. Rio Tinto wants to own more of Oyu Tolgoi, and it will almost certainly buy the rest of Turquoise Hill one day. CIBC analyst Tom Meyer thinks that day will be sooner rather than later. He expects the mining giant to pay a premium for the Turquoise Hill shares it does not own in the next 12 to 18 months, or once the key risks from the project are removed. Those risks include financing, a cost update on Oyu Tolgoi's underground development, and next year's Mongolian election. Mr. Meyer figures Rio has every incentive to maximize operating performance, but no incentive to "promote" the true value of the asset. The lower the stock price for Turquoise Hill, the less Rio has to pay to buy it out. "It is worth remembering that Rio Tinto is driving the bus," Mr. Meyer said in a note. He maintained a sector underperformer rating on the stock and a price target of $4 a share. This is a relative valuation call.

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