Why Turquoise Hill Resources (TRQ) Is Tripping on Wednesday

NEW YORK ( TheStreet) -- Turquoise Hill Resources ( TRQ) is tumbling on Wednesday on the announcement it is facing continued complications at its Oyu Tolgoi copper mine.

By midafternoon, shares have taken off 4% to $3.29.

Turquoise Hill, a majority-owned subsidiary of Rio Tinto (RIO), owns a 66% interest in the Mongolia-based mining project. The mine, of which the Mongolian government holds a 34% stake in, has seen production interruptions due to delays in negotiations on shareholder issues and financing projections.

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"While discussions remain constructive, it may not be possible to resolve the shareholder issues until the underground feasibility study has been completed, reviewed and approved by all parties and all necessary permits have been received," the company said in a statement.

Vancouver-based Turquoise expects the feasibility study to be completed in the first half of 2014.

The company also reported fourth-quarter revenue of $84 million and net income of 11 cents a share. Profits came in far higher than analysts' estimates; averages compiled by Thomson Reuters called for a net loss of 9 cents a share.

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