UPDATE: Turquoise Hill (TRQ) Cut to Perform at BMO; Project Delays Could Lead to More Downside

July 29, 2013 7:38 AM EDT
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Price: $3.42 +1.79%

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Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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(Updated - July 29, 2013 12:58 PM EDT)

BMO Capital downgraded Turquoise Hill Resources (NYSE: TRQ) from Outperform to Market Perform with a price target of C$5.50. On Monday, Turquoise Hill announced that the company has received notification from the Government of Mongolia that project financing for Oyu Tolgoi will now require approval by the Mongolian Parliament. The company said it continues to engage with Rio Tinto (NYSE: RIO) and the Government of Mongolia to finalize project financing.

"Due to the need for parliamentary approval, it is likely to take some time to gain the necessary consent. As a result, funding and development of the Oyu Tolgoi underground will be delayed until matters with the Mongolian Government can be resolved and a new timetable has been agreed," said the company.

Commenting, analyst Tony Robson said he doesn't expect real progress on talks this year, and he thinks there is more downside risk if the underground project is deferred indefinitely.

For an analyst ratings summary and ratings history on Turquoise Hill Resources (NYSE: TRQ) click here. For more ratings news on Turquoise Hill Resources click here.

Shares of Turquoise Hill Resources closed at $5.32 yesterday.

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