TRQ - Why Turquoise Hill Resources' Stock Is Tanking Today
Shares of Turquoise Hill Resources (NYSE: TRQ) were down about 19% by 10:45 a.m. EDT on Thursday. Weighing on the mining stock was an agreement it reached with its controlling shareholder Rio Tinto (NYSE: RIO) on a long-term funding plan for the Oyu Tolgoi copper mine in Mongolia.
Turquoise Hill signed a memorandum of understanding with Rio Tinto, which currently holds 50.8% of its outstanding shares. The plan, according to the announcement, "provides a clear pathway to progress the financing for completion of the Oyu Tolgoi Underground Project in Mongolia and addresses TRQ's funding position." Under the terms of the agreement, the companies will:
An open-pit copper mine. Image source: Getty Images.