Hmmm, Rio Tinto is trying to put a value on Oyu Tolgoi at around A$8 Billion, but many holders at Turquoise Hill disagree, and probably rightly so, first rule of business, never accept the first offer (unless it is too good to refuse).
I think, with the high grade core within the starter pit still growing and a favourable Scoping Study, your 10 bag scenario is definitely within the realms of possibility by mid/late 2022 providing Colin and Andrew can get a buyer to the table.
I don’t think it will fail, Copper is too important going forward and while there are other deposits, none sit on Chinas doorstep, on flat ground, in a Country currently under favourable investment reform, and with Infrastructure ready to go.
Quite simply put, the lack of selling volume is deafening, it’s a wait and hold scenario for, as Colin put it, a liquidity event, which is what they are setting Kharmagtai up for. A lot of institutions sitting in the register, they have patience.
Red Mountain is basically on hold to my mind until they are cashed up from Kharmagtai to deal with it as their next big project, just my take on it. They may even be able to JV one of the neighbours for the right amount
My opinions only, not to be taken as financial advice etc etc.
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