CAPITAL MARKETS

Turquoise Hill slumps, Blue Lagoon sparkles on markets

Mixed fortunes for mining equities

Staff reporter
 Delays, cost blowout at Oyu Tolgoi in Mongolia hurts Turquoise Hill Resources

Delays, cost blowout at Oyu Tolgoi in Mongolia hurts Turquoise Hill Resources

Shares in Turquoise Hill Resources (TSX: TRQ) plunged 43% on high volume yesterday, as news emerged of a cost blowout and delays at its flagship asset, a stake in the Oyu Tolgoi copper mine in Mongolia.

Project manager Rio Tinto (LSE: RIO) yesterday flagged the problems facing the US$5.3 billion underground expansion due to challenging ground conditions, warning costs could increase by up to $1.9 billion and first sustainable production could be delayed up to 30 months.
 
Rio Tinto (LSE: RIO) closed down 0.37% in London.

Across the pond, newly-listed Blue Lagoon Resources (CSE: BLLG) shot up more than 48% on low volume as it completed its purchase of the Golden Wonder property in British Columbia and announced summer exploration plans.

Blue Lagoon started trading on the Canadian Securities Exchange on July 4. It does not have a website and its president and CEO uses a gmail account.

At the opposite end of the spectrum, mining major BHP (ASX: BHP) was up 1.1% in afternoon trade as it reported group copper-equivalent production rising 11% in the June quarter.

However production was down 2% for the year and BHP said it expected to record a "negative movement" of about $1 billion for the year to June 30 due to unplanned production outages, copper grade declines and higher coal costs.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.