Rio Tinto Share Discussion Threads

[marktime1231] 15/8/2022 16:26

So Rio which is the majority owner of TH has rejected its own offer? I don't think so!

[waldron] 15/8/2022 14:13

Michele Maatouk

Sharecast News

15 Aug, 2022 12:11 15 Aug, 2022 12:51

Turquoise Hill rejects $2.7bn takeover offer from Rio Tinto

Miner Rio Tinto reiterated its $2.7bn takeover offer for Canada’s Turquoise Hill Resources on Monday after it was rejected.

In March, Rio offered CAD34 per share for the shares of Toronto-listed Turquoise Hill it does not already own. However, the company said on Monday that the offer "does not fully and fairly reflect the fundamental and long-term strategic value" of the group’s majority ownership of the Oyu Tolgoi project.

It also said the offer price was "well below a range of values implied by TD Securities’ preliminary analysis".

Maryse Saint-Laurent, chair of the Special Committee of independent directors of Turquoise Hill, said: "Market conditions in the equity and copper markets have changed significantly since the receipt of Rio Tinto’s privatisation proposal in March. At the same time, the company has continued to make positive progress on the underground project. The Special Committee has considered all relevant factors in reaching its decision, including TD’s preliminary indications of value analysis.

"The Special Committee will now concentrate on the other major elements of its mandate and support company management in raising at least US$650m in new equity by year-end as required under our funding agreement with Rio Tinto."

Rio said it was disappointed by the decision and still believes the terms of the deal "would deliver compelling value for Turquoise Hill minority shareholders". It would also provide certainty of an all-cash offer at an attractive premium of 32% to Turquoise Hill's closing price share price on 11 March, it added.

[wall street trader] 15/8/2022 13:22

Is this still paying a dividend and if so what's the yield ?

[waldron] 15/8/2022 06:32

Turquoise Hill Resources Ltd. Monday said a special committee of independent directors found a takeover proposal from majority shareholder Rio Tinto PLC isn't in the best interest of the company or its minority shareholders.

Turquoise Hill, which is 51%-owned by Rio Tinto, has a 66% interest in the Oyu Tolgoi copper-gold mine in Mongolia. In March, Rio Tinto made an all-cash offer to buy the shares it doesn't hold in Turquoise Hill for 34 Canadian dollars (US$26.57) each, a 32% premium to the last closing price before the offer was announced.

This proposal valued the Turquoise Hill minority share capital at roughly US$2.7 billion.

On Monday, Turquoise Hill said its special committee was terminating its review of Rio Tinto's proposal, which it said "does not fully and fairly reflect the fundamental and long-term strategic value of the company's majority ownership of the Oyu Tolgoi project."

Preliminary indications of value conducted by TD Securities found Rio Tinto's offer "was well below a range of values implied by TD's preliminary analysis," Turquoise Hill said.

"Engagement between the parties has not resulted in a consensus on value and price or in any improved proposal from Rio Tinto," it said.

Rio Tinto couldn't immediately be reached for comment.



Write to Rhiannon Hoyle at [e-mail]



(END) Dow Jones Newswires

August 15, 2022 01:09 ET (05:09 GMT)

[sundial1] 12/8/2022 13:29

only think selling copper without banks backing loans, could see some long time decline if it happens.

[eggbaconandbubble] 12/8/2022 12:58

I thnk Glencore would be covered on payment (letters of credit etc.) or insured.

[montyhedge] 12/8/2022 11:06

Been offered any cheap copper, Glencore $500m worth of copper gone missing in China,.

[eggbaconandbubble] 12/8/2022 09:57

As far as I'm concerned I want it to be north of £75 but I guess I'll have to be patient and keep picking up a handsome divi in the meantime.

[tuftymatt] 12/8/2022 09:24

I agree and think this wants to be north of 5000

[greendig] 12/8/2022 09:22

The fact that it has not sunk (as usual as you correctly say) post div suggests that the market thinks there is still some life in the uptrend I think.

[greendig] 12/8/2022 09:20

Sorry, I posted this on the wrong thread i think.


One user posts the SMM analysis daily on Hot Copper. It makes very interesting reading.

Basically Steel consumption is very similar to 2021 levels for this time of the year, while production is around 20% lower. This is leading to a steady decline in steel stocks, presumably pushing prices and therefore profitability higher. This is not yet leading to a meaningful increase in steel production though maybe partly due to environmental curbs as well as hesitation on the part of the mills. It does mean that they are back in profit though.

Hence IO port stocks are still increasing albeit slowly.

IM(V)HO one of two things can happen.

1) steel consumption falls as a result of the fears that market participants have coming true (basically a housing crash) bringing supply and demand back in sync.

2) steel consumption remains robust and at some point fairly soon mills will be strongly incentivised to increase production to take advantage of the better profitability. This should feed through IO consumption and hence prices soon after. There will also be a strong incentive to use higher grade ores to maximise profit if there are environmental restrictions. This is in RIO's favour.

That to me is the current uncertainty. For me it is an asymmetric bet as I really don't think that the Chinese authorities can allow property construction to remain stalled for fear of social unrest, the thing they fear the most as it is far harder to control than the markets over which they have more power. there's also a lot of infrastructure funding already in place that will continue to drive steel demand. (This is not IMO a Lehman type moment as the Chinese have far greater control over their markets than in the west.)

I'm therefore long IO for the time being.

All very much DYOR!

hxxps://static-metal.smm.cn/production/subscribe/email/pqWei20220729190017.pdf

[greendig] 12/8/2022 08:59

One user posts the SMM analysis daily on Hot Copper. It makes very interesting reading.

Basically Steel consumption is very similar to 2021 levels for this time of the year, while production is around 20% lower. This is leading to a steady decline in steel stocks, presumably pushing prices and therefore profitability higher. This is not yet leading to a meaningful increase in steel production though maybe partly due to environmental curbs as well as hesitation on the part of the mills. It does mean that they are back in profit though.

Hence IO port stocks are still increasing albeit slowly.

IM(V)HO one of two things can happen.

1) steel consumption falls as a result of the fears that market participants have coming true (basically a housing crash) bringing supply and demand back in sync.

2) steel consumption remains robust and at some point fairly soon mills will be strongly incentivised to increase production to take advantage of the better profitability. This should feed through IO consumption and hence prices soon after.

That to me is the current uncertainty. For me it is an asymmetric bet as I really don't think that the Chinese authorities can allow property construction to remain stalled for fear of social unrest, the thing they fear the most as it is far harder to control that the markets over which they have more power. there's also a lot of infrastructure funding already in place that will continue to drive steel demand.

I'm therefore long IO for the time being.

All very much DYOR!

hxxps://static-metal.smm.cn/production/subscribe/email/pqWei20220729190017.pdf

[cassini] 11/8/2022 23:06

Actually recovered a little during the day and closed only about 180p down, compared to the special divi today of, what, about 223p? (from memory).

[turvart] 11/8/2022 19:15

RIO always seems to look like it is holding up for several days after Ex-div then it dies a death and keeps retracing until Oct/Nov, be warned now if your buying your be holding these until next Ex-div. RIO will be under £45 in Autumn.

[spud] 11/8/2022 14:46

Took some more on the ex divi dip. Almost accumulated my target holding now.

spud

[eggbaconandbubble] 11/8/2022 14:17

They could have had egg bacon and bubble, if they had some bubble.

[tuftymatt] 11/8/2022 14:16

So far so good here today.
£2.216 banked and a divi drop of well under that as I type 😀

[craftyale] 11/8/2022 13:55

Exactly, I kept my shares.

[adejuk] 11/8/2022 13:26

my dad was with monty in the desert
one of the fave sayings was
if we had some eggs, we could have some eggs and bacon, if we had some bacon.
seems apt

[eggbaconandbubble] 11/8/2022 12:48

The divi is 222 the share price is down about 200. What's the big deal?

[frogkid] 11/8/2022 12:31

Should have bailed at 50 quid ade

[adejuk] 11/8/2022 11:51

he giveth with one hand and taketh with the other.
what is the point?
i know, i know. i'll get my coat.