LOS ANGELES, Oct 22, 2020 (GLOBE NEWSWIRE via COMTEX) -- Investors with a $100,000 or more in losses are encouraged to contact the firm
Click here to join the case�??
The Portnoy Law Firm advises investors that a class action lawsuit has been filed on behalf of Turquoise Hill Resources, Ltd. ("Turquoise" or "the Company") /zigman2/quotes/208953645/composite TRQ +7.60% investors that acquired securities July 17, 2018 and July 31, 2019.
Investors are encouraged to contact attorney Lesley F. Portnoy, to determine eligibility to participate in this action, by phone 310-692-8883 or email, or click here to join the case.
Turquoise announced in a press release on February 26, 2019 that, while "the [Oyu Tolgoi] project cost was expected to remain within the $5.3 billion budget," a review had determined that "there was an increasingly likely risk of a further delay to sustainable first production beyond Q3'21." Turquoise Hill attributed the "likely risk" to productivity setbacks in completing Shaft 2 and "challenging ground conditions that have had a direct impact on the project's critical path."
Turquoise's share price fell $0.27, or approximately 13%, on this news, to close at $1.83 per share on February 27, 2019, which injured investors.
Then, Turquoise Hill announced on July 15, 2019 that sustainable first production from the underground development of Oyu Tolgoi would henceforth be delayed by another 9 to 21 months until May 2022 to June 2023. Turquoise also stated that "the development capital spend for the project may increase by $1.2 to $1.9 billion over the $5.3 billion previously disclosed."
Turquoise's share price fell $0.47, or 44%, on this news, to close at $0.60 per share on July 16, 2019, which injured investors further.
Then, after the market closed on July 31, 2019, Turquoise disclosed that it had taken a $600 million impairment charge and a significant "deferred income tax recognition adjustment", which was tied to the Oyu Tolgoi project, and that it had suffered a loss in the second quarter of 2019.
Turquoise's share price fell $0.05, or over 8%, on this news, to close at $0.53 per share on August 1, 2019, which injured investors further.
It is alleged in the complaint that throughout the Class Period, Turquoise made statements that were materially misleading and/or false, as well as failed to disclose material adverse facts about the Turquoise's operations, business, and prospects. Specifically, Turquoise failed to disclose to investors: (1) that the progress of underground development of Oyu Tolgoi was not proceeding as planned; (2) that there were significant undisclosed underground stability problems that called into question the projected cost and timing of production and the design of the mine; (3) Turquoise publicly released estimates of the date of completion, cost, and dates for production from the underground mine were not realizable; (4) the development capital that was required for the Oyu Tolgoi underground development would cost significantly more than a billion dollars in excess of what Turquoise had represented; (5) Further financing and/or equity would be required for Turquoise to complete the project; and (6), Turquoise's positive statements about their business, operations, and prospects were materially misleading and/or lacked a reasonable basis, as a result of the foregoing.
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The Portnoy Law Firm represents investors in pursuing claims arising from corporate wrongdoing. The Firm's founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
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