Turquoise Hill Resources Ltd (NYSE:TRQ) Trailed By Set Back

Dallas, Texas 03/31/2014 (FINANCIALSTRENDS) – Turquoise Hill Resources Ltd (NYSE:TRQ) which is currently the owner of the Oyu Tolgoi, definitely is in the red, as it has yet to set up the funds required for operations. Turquoise Hill Resources Ltd (NYSE:TRQ) has been working with Rio Tinto to expand Oyu Tolgoi and the project has been delayed due to financial fund raising issues.

Rio as well as the government of Mongolia have been at logger heads on the issue of payments. The government has been claiming that the company has to pay towards development costs, while TRQ is yet to accept the terms. Currently Oyu Tolgoi project is co- owned by Rio, holding upto 66% of the stake in the company. And there is likely cause of further delay as well. Apparently, all the stakeholders have concluded that the costs of repayment will be defined after a feasibility study is conducted in the site.

Such a study is expected to be conducted in the next two or three months, and definitely before June 2014, assume experts observing developments related to Oyu Tolgoi project. Turquoise Hill Resources Ltd (NYSE:TRQ) holds a market cap of $6.88 billion and average trade volume in the range of 8.66 million. The company has opened on the stock market at $3.41 per share and has been trading on the stock market at prices ranging between $3.37 and $3.46. The company also holds and EPS of -0.34. The outstanding shares for the company are currently at 2.01 Billion. Beta is 2.21.

Turquoise Hill Resources Ltd (NYSE:TRQ) partner Rio, pending the discussions on the sharing of costs, will fail to meet the end of the financial year statements, where March 31, 2014 as the deadline.

Turquoise Hill Resources Ltd (NYSE:TRQ) has also reported that Oyu Tolgoi has ensured complete safety for 2013 and that no fatalities were reported. The output from Oyu Tolgoi was 290,000 tonnes, with 76,700 tonnes as Copper concentrates.

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