BMO Capital Markets Investment Banking Pitch Book
BMO Capital Markets
Turquoise Hill Financial Perspectives
(C$ per share)
HUSP Range with
47% Premium
$29.74
Driver
10
$20.77
2
3
$40.84
HUSP Since
HUSP Since
Initial Offer Revised Offer
Selected Range
47% Premium to 47% Premium to
$14- $20 HUSP $28-$29 HUSP 0.95x-1.15x
(2)
(3)
Range
Range
C$30.9
Precedent
Precedent
Transactions Transactions
(Developers)
(Producers)
$69.57
$57.47
CORE METHODOLOGIES
P/NAV
(Model)
(4)
$57.68
$44.37
(5)
1.00x 1.30x
Low Relative
Capital
Requirement
Developers
AUS$1050 of equity financing at CS37, 17; model NAVPS discounted to 31-Dec-24
8.5% and subsequently decounted to present at real cost of yo21.4%
HUSP range based on a 21-45% (25 to 75 percentile of per share price performance) discount to
C$25.08
$42.35
Trading Multiples
$27.22
0.45x -0.70x
P/NAV Range
A
A
7
B
P/NAV
(Model)
Developer
Group
(5)
$24.20
$9.07
0.15x -0.40x
P/NAV Range
(7)
DCF at WACC
$33.97
$29.70
Street
Consensus
Commodity
Prices
$32.16
17.1% -19.1%
Discount Rate
$27.91
Spot Commodity
Prices
Based on 3575 percent of the developer PINAV range, excluding TRO
Based on producer PVNAV range,excluding TQ and perhigh and low
Low to high and off the developer precedent transaction FINAW range
Based on 2575 percent of the producer precedent transaction PINAY
Low to high end of the developer PNAV range among low relative capital requirement pers
uding TR
INFORMATIONAL
PURPOSES
Equity
Research
Target Prices
$38.77
$32.30
1-Year Target
Prices Disc. to
Current
Discounted In-
Production
Rio Tinto Revised
Offer: $43
Current Broker
Range
with Trading
Multiples (¹)
$31.06
$22.19
P/NAV
(Model)
(3)
0.50x -0.70x
PROJECT ASTERIXView entire presentation