RIO's intentions towards TRQ
TO STRIP TRQ OF ALL ASSETS OTHER THAN OT
TODAYS' NEWS CONFIRMS THAT
1. TRYING TO SELL 56% TRQ STAKE IN SGQ TO CHALCO FOR $960M BACKFIRED
I guess, will sell it for whatever price in whatever form or whatever chunks acceptable to GOM -donks
as soon as feasible
2. Kazak gold stake sold for $ 300m
3. next four molybdenum, rhenium, copper, gold, zinc, silver, and uranium projects in Australia; and exploration programs focusing on porphyry-related copper-gold and epithermal gold-silver deposits in Indonesia, Mongolia, and the Philippines.
Unless those sales/ stripping are priced already -in , the SP shall drop a bit with each sale
Mitigated by GOM debacle news and production progress or delays
When TRQ will equal just OT the Q will be
what are RIO intentions regarding TRQ cash and TRQ - itself
I guess ,depending on donks situation either those $ + 2 b cash will be used to invest in OT
Form a part of phase 2 project financing
or TRQ will pay back RIO's loans ( how much it is? )
--either part of this coming ( or not ) $ 4-5 b financing will pay RIO's loans
( this way RIO will reduce it's own exposure/risk = replace it;s cash sunk in TRQ
with cash of lenders = "market" )
--or if financing and therefore phase 2 will not happen RIO will get it's loans back by reducing TRQ cash close to zero.
The pay back must happen - that's the primary RIO goal announced from start-
The loan supposed to be just a bridge before permanent shifting of risk on the market shoulders
Whichever way they can - equity/rights or debt.
The donks do everyting to torpedo ( not only ) that phase 2 financing
including appeal to the world banks not to lent to RIO
That.s unheard of in history ingerention in RIO's affairs by some low life pit bull dogs
Determined to win even if they kill the goose and themselves .
The level of donks " discussion" dropped to a level of some trailer trash wife calling the bank to stop lending to her husband because he cheated on her.
Since M president HAWKISH SPEECH ( deretmined to generate votes = to hold on to his position at any cost )
the war on RIO exploded to new hights
1. Attack on RIOs satelites ( SGQ EGI ),is the for-taste = shows the way they will go
DONKS HAD TILL jAN 10 2013 TIME TO RESOLVE SGQ dispute through negotiations
THEY FAILED TO DO SO AND NOW THE MATTER IS DUE FOR COURT.
TO FORCE SGQ INTO SUBMISSION SCARE SGQ they attacked it using own phoney . " independent " LOOOL courts
Launched instead corruption probe against some BOLD_BAT in charge of awarding SGQ licences.
SGQ mongolian bank accounts ( sorry not much money there ) and other assets ( trucks mining equip ,property ) frozen,
and now donks want to force RIO to put major money into M banks
'''LOOOOL never gonna happen .
SGQ executive detained within M ... right after Jan 10 = the time to launch SGQ suit
They hold him in M as a hostage to keep him handy for next step of nationalization- jailing him
If SGQ will dare to proceed with it's lawsuit against GOM in international courts
In Khan Resources case donks have till APR TO SUBMIT THEIR DEFENSE DOCS
and the trial exposing their criminal ways will start .
If SGQ will sue for same damages as Khan = just 10% of LOM revenues
the $ 326 M KHAN suit will turn in SGQ case to like $ 4.5 b
If TRQ/RIO will sue them for 10% of LOM rev it will be what ?
$20- 40 B ?
Very good deal for donks - they can keep 90% of LOM rev
- if they will be able to generate that rev alone
-- export anything during inevitable sealing of their borders by Chineese .
ADD CHALCO SUIT OVER ERDENES TT BREACH OF CONTRACT
( GOM STEALING $ 250 M CHALCO ADVANCES TO TT AND BANKRUPTING IT )
and tens of other cos following the initial wave OF SUITS
AND IN COUPLE OF YEARS WE WILL SEE confiscation of first all M
assets aboard ( embassy buildings airplanes , trains, goods shipments )
That will be drop in the bucket against the judgement amounts
so , FORCED sale of South Gobi lands CAN be in order
... to execute/ satisfy the judgments .
RIO has supply agreements with Chinese smelters , the donks don`t
Given RIO cloud in China ( CHINA WON'T SURVIVE WITHOUT RIO's iron ORE )
and inerconnections with Chalco ( common JVs / trades /deals
and Chalco willingness to protect it;s investment in RIO
( biggest shareholder )
organizing boycott of M exports / sealing the M border by most big state
cos is also likely .
As is cutting the power supply to OT and whole South Gobi region
The agrement to supply power is with TRQ - not donks .
Rio is able to supply the smelters from other sources than OT
IE Escondida own by RIO and BHP- the biggest Cu mine in world increased output lately by 30%
That``s`200k tones of Cu more .
Will be more next years , because RIO and BHP is investing another $ 4.5 b in it.
As much as in OT.