Mining Stock Plunges on Cost Overruns

Turquoise Hill Resources Ltd. (TSX:TRQ), a mining stock, drop after announcing ballooning costs at its Oyu Tolgoi copper and gold mine

Sean Mason | July 16, 2019 | SmallCapPower

Big mine development cost increases weighed heavily on a Canada-listed mining stock Tuesday. Here’s some small stocks making big moves on Tuesday, July 16, 2019 (as of 4 pm EST):

Turquoise Hill Resources Ltd. (TSX:TRQ), a mining stock, plummeted 43% to $0.79 on Tuesday after announcing that the cost of developing its 66% owned giant Oyu Tolgoi copper and gold mine in Mongolia could increase by $1.2 billion to $1.9 billion over the $5.3 billion previously disclosed and the project may be delayed by as much as two and a half years.

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As well, shares of MediPharm Labs Corp. (TSXV:LABS) rose as much as 12% as the cannabis extraction company said by the end of Q2 2019, it increased production to an average of 75 million milligrams of active cannabinoid component concentrate on a weekly basis, which it believes will support “significant, large-scale white label contracts.”

Great Bear Resources Ltd. (TSXV:GBR), meanwhile, reported the discovery of what it called a new high-grade “Yuma” gold zone at its 100% owned Dixie Project in the Red Lake District of Ontario. The Company added that results will be released as received and analyzed, and that follow-up drilling is already underway. Great Bear Resources stock moved up 14% to $5.17 following the announcement.

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Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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