General chit chat thread., page-1623

Follow up news.

Might take a while to sort out the takeover of the Oyu Tolgoi. I hope it's going well and the expansion can go ahead, which means more energy consumption for the mine.

Typical play: asking for higher price in response to the very first offer

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Rio Tinto may need to improve its $US2.7 billion ($3.66 billion) offer to take full control of Canadian company Turquoise Hill Resources after the second biggest shareholder suggested the offer undervalued the firm’s stake in Mongolia’s Oyu Tolgoi mine.

Originally expected to cost $US5.3 billion, the underground expansion is now tipped to cost closer to $US6.9 billion and Rio has over the past two years urged Turquoise Hill to solve the funding shortfall by conducting an equity raising.

Rio bought its stake in Turquoise Hill at an average price of just over $C62 (about $66.5) and the stock traded as high as $C202 (about $217) in early 2011.But the subsequent decade was marked by frequent disputes between Rio and the Mongolian government and delays on the underground project, driving the share price lower.Turquoise Hill shares traded as low as $C4.60 during the market rout of March 2020, but the stock recovered to average $C20.59 in the past year amid a rally in copper and gold prices and on signs that relations with the Mongolian government were improving.

https://www.copyright link/companies/mining/rio-tinto-told-to-sweeten-3-6b-copper-takeover-bid-20220318-p5a5xv