SailingStone Capital Supports Turquoise Hill Resources Minority Rights
In 2019, Turquoise Hill incumbent independent directors received WITHHOLD votes from more than 50% of the minority investors who voted, despite the explicit support of ISS and Glass Lewis. Instead of engaging in substantive discussions with their largest minority owners to address legitimate corporate governance concerns, the Board chose to hide behind its majority shareholder. The minority owners deserve representation on the Board, and as a result SailingStone is supportive of and will vote FOR the independent director nominee
Separately, Managing Partner
While the market rightly remains focused on the de-risked mine plan and the implementation of interim and permanent financing arrangements, now is not the time to ignore basic corporate governance standards. Progress is being made, but there is much more to be accomplished. Allowing Turquoise Hill minorities to determine their own representation is only reasonable given the track record and de minimis shareholdings of the incumbent independent directors.
Our expertise is on the supply-side of the equation, as we have spent more than 25 years studying the economics of upstream commodities and investing in the companies that produce them. We believe that this provides us with a unique perspective on how different commodity complexes react to a prolonged period of low commodity prices, and a point of view in terms of opportunities, survivors and value traps which exist in both the public and private markets.
Kelly McKale, Head of Investor Relations