Turquoise Hill Resources

Turquoise Hill Resources Ltd
Formerly
  • 463212 B.C. Ltd (1994)
  • Indochina Goldfields Ltd (1994–1999)
  • Ivanhoe Mines Ltd (1999–2012)
Company typeSubsidiary
TSX: TRQ (2012–2022)
Nasdaq: TRQ (2013–2020)
NYSE: TRQ (2013–2022)
IndustryMining & Exploration
Founded1994
FounderRobert Friedland (ownership at 15.5%,was 18.2% bef.Jan.27 rights offering)[1][2]
Headquarters
Montreal, Quebec
,
Canada
Key people
John Macken, President
Kay Priestly, CEO
Christopher Bateman CFO
ProductsGold, Copper, Uranium, Coal
Molybdenum, Rhenium
RevenueUS$179.05 million (2011)Increase124%[3]
DecreaseUS$(570.37) mil (2011)[3]
Total assets$6,136.83 million (Dec12)Increase91%[3][4]
Total equity$1.716 billion (July20)[4]
ParentRio Tinto Group
Websitewww.turquoisehill.com

Turquoise Hill Resources was a Canadian mineral exploration and development company headquartered in Montreal, Quebec, and since December 2022, a wholly owned subsidiary of Rio Tinto Group.[5] The company was called Ivanhoe Mines until August 2, 2012 when a financing agreement was completed with Rio Tinto.[6] Rio Tinto acquired full ownership of Turquoise Hill in December 2022.

Its principal and only material mineral resource interest is a 66% share of the Oyu Tolgoi Copper-Gold Mine in Southern Mongolia 200 km east of Dalanzadgad. The Oyu Tolgoi Project is considered one of the world's largest copper and gold porphyry deposits.[7] For development to happen at Oyu Tolgoi, an agreement had to be made in which the Mongolian government took a 34% stake in the project; the royalty arrangement it currently has with the Mongolian government took years to reach which caused significant delays in project development.[1][8]

In Australia, Turquoise Hill Resources has stakes in mines containing gold, uranium, copper and the world's highest grade molybdenum and rhenium.[9]

In Mongolia the company controls several other gold and copper mine development projects. It owns a 50% interest in the Kyzyl gold project in Kazakhstan[10] through Altynalmas Gold and has exploration projects in China, Indonesia and the Philippines. Turquoise Hill Resources also owns 14% of Entree Gold,[11] a company with interests in copper and gold projects in southern Mongolia and Arizona, and 14% of Exco Resources which operates Cloncurry's copper project and the White Dam gold mine in Australia.[12]

The company's largest shareholder is Rio Tinto, with a stake of 50.8%.[13] This is up from 46.5% beforehand. In June 2011 Rio Tinto paid $502 million for 55 million additional shares, increasing its control to 46.5% from 42% (35% prior to that) and giving it an extra seat on the board (up to 7/14), though Rio Tinto was restricted from increasing its stake in the company to a majority before 2012. Since 2006 Rio Tinto invested $3.5 billion in Ivanhoe Mines.[14][15] Former Canadian prime minister Jean Chrétien is a special advisor to the company.[16][17]

In September 2010 it was reported that exploration around Oyu Tolgoi at the Heruga North deposit revealed higher reserves of gold and copper than previously estimated (the news caused IVN share prices to rise 6%).[18] Capital spending is likely to reach $5Bn;[19] in October 2010, Ivanhoe announced a new $1Bn share offering in order to raise funds to develop this mine.[20] Due to new entitlement offers by Ivanhoe Australia (made to raise funding in order to develop assets in North Queensland, Australia) Ivanhoe Mines' interest in the company was reduced from 81% to 62%.[21][22] At the end of March 2011 construction of Oyu Toloi was 15% complete.[23] At the end of February 2012 construction of Oyu Tolgoi was 73% complete.[24]

In 2016 Turquoise Hill produced 201,300 tonnes of copper and 300,000 ounces of gold, exceeding guidance and generating US$1.2 billion in revenue. The Company recorded net income from continuing operations attributable to owners of Turquoise Hill of $210.6 million. [25]

  1. ^ a b "Ivanhoe rights offering raises $1.8 billion". Reuters. 2011-01-27. Archived from the original on January 31, 2011.
  2. ^ Chambers, Matt (2010-12-16). "Ivanhoe chief locked in for Mongolia mine". The Australian. The Australian.
  3. ^ a b c "Ivanhoe Mines Announces 2011 Financial Results and Review of Operations". March 20, 2012.
  4. ^ a b "Ivanhoe Mines 2011 1st Quarter Results". 2011-05-13. Archived from the original on 2011-07-03. Retrieved 2011-06-27.
  5. ^ "Rio Tinto completes acquisition of Turquoise Hill". London: Rio Tinto plc. 16 December 2022. Retrieved 20 May 2024.
  6. ^ "Ivanhoe morphs into Turquoise Hill Resources". August 3, 2012.
  7. ^ "Ivanhoe Mines Reports Massive Mongolian copper and gold deposits". CBC News. 2003-02-26.
  8. ^ "ivanhoe mines key assets, equity investments". Reuters. 2010-01-06. Retrieved 2010-04-29.
  9. ^ "mining news". 2010-03-31. Archived from the original on 2011-07-16. Retrieved 2010-04-23.
  10. ^ "Ivanhoe Mines Announces Commencement to Develop World Class Kyzyl Gold Project". yahoobiz. 2010-03-24. Archived from the original on 2012-07-11.
  11. ^ "entree gold provides exploration update for 2010". 2010-04-13.
  12. ^ "There's value in Exco, takeover or not". The Sydney Morning Herald. 2011-06-01.
  13. ^ Fitzgerald, Barry (April 7, 2012). "Control of Ivanhoe's golden future is up in the air as Rio Tinto decides on its course". The Australian.
  14. ^ "Rio Tinto raises stake in Ivanhoe for $502 million". 2011-06-21.[dead link]
  15. ^ Riseborough, Jesse (2010-09-13). "Rio Tinto Raises Ivanhoe Mines Stake to 35% as Loan Converts Into Shares - Bloomberg". Retrieved 2010-09-13.
  16. ^ "Ivanhoe Mines Ltd.: Altynalmas' Kyzyl Gold Project Estimated Average Annual Gold Production of 368,000 Ounces Confirmed by Independent Pre-Feasibility Study". 2010-06-30.
  17. ^ "Ivanhoe Mines Ltd. Financial Statements 2009" (PDF). 2010. Archived from the original (PDF) on 2011-07-13. Retrieved 2010-09-29.
  18. ^ Lau, Ashley P. (2010-09-28). "Ivanhoe Mines shares rise after new Mongolian find". Marketwatch.
  19. ^ Wan, Hanny (2010-10-13). "Oyu Tolgoi Copper Mine Spending to Be More Than $5 Billion, Rio Forecasts - Bloomberg". Retrieved 2010-10-18.
  20. ^ "Ivanhoe plans $1-billion share offer". CTV News. Retrieved 2010-10-18.[dead link]
  21. ^ Fitzgerald, Barry (2010-08-11). "Ivanhoe looks to raise $405m for project development". The Sydney Morning Herald.
  22. ^ "Ivanhoe Australia Seeks Canada Listing". 2010-10-14.
  23. ^ Cite error: The named reference mayten was invoked but never defined (see the help page).
  24. ^ "Ivanhoe Mines sells stake in coal miner for $889M as it develops Oyu Tolgoi". Canadian Business. April 2, 2012.[permanent dead link]
  25. ^ "Turquoise Hill Resources Announces Financial Results and Review of Operations for 2016". www.juniorminingnetwork.com. 27 March 2017. Retrieved 2017-03-27.