Is Turquoise Hill (TRQ) a Value? Book Value at 4.0X Current PPS
Turquoise Hill Resources Ltd. (NYSE: TRQ), together with its subsidiaries, operates as a mining company. It is a subsidiary of Rio Tinto plc., the worlds second largest metals and mining company (market cap $43B). The company explores for copper, gold, and silver deposits. It primarily develops and operates the Oyu Tolgoi copper-gold mine located in southern Mongolia.
Current price $12.56/share
A look at the stock chart indicates a steady climb since November currently trading above it’s 50 and 200 DMA.
There are a few company stats that stand out immediately with TRQ:
Book Value $46.79/share
P/E ratio 6.76
Insiders own 50.79% of the outstanding shares and institutions hold 36.39%.
As of Q3 2020, YOY growth in quarterly revenue was 26.5% and YOY quarterly income was up 79.3%
Market cap $2.43B
2020 Operational highlights
Full year copper production of 149,631 tons vs original guidance range of 140,000 – 170,000 tons
Full year gold production of 181,858 ounces vs original guidance range of 120,000 – 150,000 ounces.
Oyu Tolgoi is expected to produce 160,000 to 180,000 tons of copper and 500,000 to 550,000 ounces of gold in concentrates in 2021 from processing of both open pit and underground development material.
That guidance, given today’s mineral pricing, could yield revenues of $2.19B for the current year. We don’t know 2020 revenues yet but revenues of $2.19B would be significantly higher than prior years.
TRQ is involved in a legal action involving its parent, Rio Tinto, the Mongolian government, and Pentwater Capital Management (a major shareholder). The lawsuit involves a capital raise and cost overruns at the Oyu Tolgoi mine.
Date Brokerage Action Rating Price Target
1/19/2021 Canaccord Genuity Boost Target Hold $14.00 ➝ $16.50.
1/11/2021 Scotiabank Boost Target Outperform $22.50 ➝ $27.00.
1/5/2021 BMO Capital Initiated Outperform
11/17/2020 TD Securities Boost Target Buy $17.50 ➝ $21.00.
Investors will want to follow the developments between the Mongolian Government and Rio Tinto (on TRQ’s behalf). If a path forward becomes evident in the dispute, we believe TRQ shares could move toward the book value.
In late November last year, we reported on Westwater Resources, Inc. (NASDAQ: WWR), a diversified energy materials development company, at $5.75 per share.
We wanted to update progress at the company since then. Firstly, the current share price is $8.44 (46% over our first report price).
In December WWR updated its graphite mining operations at Dorfner Anzaplan’s facilities near Amberg, Germany, as well as at facilities in Frankfort, Germany, Chicago, Illinois, and Buffalo, New York. This combined effort is expected to produce a total of more than 10 metric tons of three trademarked Westwater battery-grade graphite products: ULTRA-PMG™, ULTRA-CSPG™ and ULTRA-DEXDG™, which were previously produced at a bench scale.
This month, the company sold all its uranium mining assets to focus more fully on its graphite mining assets to enCore Energy Corp. of Vancouver, British Columbia. WWR didn’t get cash in the transaction but got an equity stake in encore and relief from some costs associated with its uranium mining operations. Perhaps most importantly, WWR gets out from under the $4M annual expense it had from uranium mining.
The company will hold a conference call to discuss its financial results for the year ended December 31, 2020, and the business outlook for the 2021 year. The conference call will be held on Tuesday, February 16, 2021 at 11:00 a.m.
US Gold (NASDAQ: USAU) is now bouncing off from the recent dip following our coverage on January 27th, 2021. US Gold announced a capital raise for operations during our coverage and traded as low as $10.76 and has now recovered to $12.45/share.
Our stance on commodities remains the same since late November. See our Fed Policy and Commodities as Inflationary Assets Report
The Traders News Group
Privacy Policy and Disclaimer
Your Consent
By using our site, you consent to our online privacy policy and disclaimer.
Do we disclose any information to outside parties?
We do not sell your information to anyone. Please see our cookie policy below.
https://tradersnewssource.com/cookie-policy-us/
What information do we collect?
We collect information from you when you subscribe to our newsletter or fill out a form on one of our social platforms. This includes your email address and or mobile phone number.
When registering on our site, as appropriate, you may be asked to enter your: e-mail address and or mobile number.
What do we use your information for?
When we collect your email or mobile number it is used for one purpose to send you the information you requested about small cap stocks. Please read our disclaimer carefully before viewing our emails.
Your information, whether public or private, will not be sold, exchanged, transferred, or given to any other company for any reason whatsoever, other than for the express purpose of delivering the information on small cap stocks that you requested.
We send periodic emails
The email address you provide may be used to send you information, the small cap stock reports you requested, respond to inquiries, and/or other requests or questions.
How do we protect your information?
We implement a variety of security measures to maintain the safety of your personal information when you enter, submit, your email address. We use secure third parties to send email and SMS messages to you.
Because we value your privacy we have taken the necessary precautions to be in compliance with the California Online Privacy Protection Act.
Online Privacy Policy Policy
This online privacy policy applies to information collected through our website and social media platforms.
Contacting Us
If there are any questions regarding this privacy policy or disclaimer you may contact us using the information below.
Editor@TradersNewsSource.com
ALL STOCKS INVOLVE RISKS AND THE POSSIBILITY OF LOSING ALL OF YOUR INVESTMENT. PLEASE CONSIDER ALL RISKS BEFORE INVESTING.
Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.
Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.
TNS LLC and its employees are not a registered investment advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.
Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operators owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled. The owners and operators of this website do not hold any form of equity in the publicly traded entities mentioned here.
The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.
In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The owners and operators of this website have never been compensated for the mention of TRQ or WWR. The owners and operators of this website do hold any form of equity in TRQ, USAU or WWR as of 02/07/21. The owners and operators of this website have been previously compensated up to twenty five thousand dollars cash via bank wire per week of our coverage of usau however, we have not been compensated for this particular coverage of usau. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.
TNS LLC is not affiliated with any exchange, electronic quotation system, the Securities Exchange Commission or FINRA. TNS LLC is not a Broker/Dealer and does not engage in high frequency trading.
