(This is not an actionable idea.)
Virtually all of Turquoise Hill’s value lies in its flagship project, Oyu Tolgoi. The company has poured several billion dollars in it and the mine is currently ramping up to commercial production. I have serious doubts about the project’s economics.
Normally, before you spend billions of dollars building out a mine, you would perform a feasibility study and release it to your investors who are putting up the billions of dollars needed to finance the mine. I could not easily find a feasibility study on the company’s website. (I believe there is a 2009 feasibility study filed on SEDAR somewhere.) This is a massive red flag. It suggests to me that the mine’s economics are so awful that the company doesn’t want its shareholders to know the truth.
