Turquoise Hill Resources Ltd
Turquoise Hill Resources Ltd
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Record second-half performance across its West Australian mine and rail system has enabled global giant Rio Tinto to lift its Pilbara iron ore production to 324.1Mt for the year to Dec 2022, a 1% improvement on the previous year. Iron ore shipments were 321.6Mt, level with FY2021.
With its new Gudai-Darri operation expected to reach sustained nameplate capacity during the year, Rio Tinto maintains its Pilbara shipments FY2023 guidance at 320-335Mt.
The move by Rio Tinto to full ownership of Turquoise Hill should be completed within days after the minority shareholders of its Canadian subsidiary voted in favour of the $US3B takeover of the 49% of shares it does not currently own.
The transaction, which will result in Rio Tinto holding 66% of the Oyu Tolgoi copper-gold mine in Mongolia in partnership with the national government, now goes to a Supreme Court of Yukon hearing scheduled on Dec 14 ahead of customary closing procedures.
(CORPORATE)
Independent directors of Turquoise Hill Resources have given their unanimous backing to a revised $3.3B bid that would result in Rio Tinto gaining a direct 66% stake in Mongolia’s Oyu Tolgoi copper-gold mine.
Global major Rio Tinto is set to take full ownership of its subsidiary, Canadian-based Turquoise Hill Resources, and its 66% stake in the massive Oyu Tolgoi copper-gold mine in Mongolia.
The companies have announced agreement in principle on a revised $US3.3B offer for the 49% of the company that Rio Tinto does not already own. Its $C43 per share offer is 67% above Turquoise Hill’s closing price at March 11, prior to the initial bid.
(CORPORATE)
Global miner Rio Tinto comes back to the table with an increased cash bid for full ownership of subsidiary Turquoise Hill and a direct 66% control of the Oyu Tolgoi project in Mongolia.
Global miner Rio Tinto has boosted its bid for 100% ownership of Turquoise Hill Resources, lifting its cash offer to the minority shareholders of the Canadian-based miner by 18% to $C40 per share.
The new offer values Turquoise Hill’s 49% minority stake at $US3.1B, up from the $2.7B bid that was rejected by the target company’s independent directors last week.
Global miner Rio Tinto insists its commitment to the Oyu Tolgoi copper-gold project in Mongolia is not affected by the rejection of its bid for 100% ownership of subsidiary Turquoise Hill Resources, 66% partner with the Mongolian government in the mine.
Turquoise Hill has terminated its review of Rio Tinto's $US2.7B offer to acquire the 49% stake it does not hold in the Canadian company.
Turquoise Hill Resources has vowed to defend a challenge by fellow Canadian Entrée Resources that could derail the long-planned underground expansion of the Oyu Tolgoi copper-gold mine in Mongolia.
Entrée holds a JV interest in a significant portion of the mine site that provides a royalty income it says underpins its strong financial position.
Rio Tinto has advanced up to $A400M liquidity to 51%-owned subsidiary Turquoise Hill Resources that will allow the Canadian company to fund ongoing underground development of the Oyu Tolgoi project in Mongolia.
The amendment to the funding plan agreed in March will enable short-term advances while TRQ evaluates Rio Tinto’s $C34 per share bid to take 100% ownership of the company.
The change also extends the deadline for TRQ to conduct a $650M equity raising by four months to end-2022.
Turquoise Hill Resources has lifted Mar 31, 2022, qtr (Q1 22) income to $US394.3M from Q1 21’s $332.1M, reflecting higher tax benefits, but with revenue from its Oyu Tolgoi mine in Mongolia falling to $402.7M from $526.5M due to the planned transition of mining to the next phase of operations.
Total operating cash costs rose to $228.9M from $201.2M, with net cash from operations jumping to $122.4M from a negative $133.2M.