The company took on a massive amount of debt in 2008 to acquire Fording Coal but attracted a china owned company to buy 17% of tck to help finance, very smart move by the ceo. Now in excellent financial position which I believe to be 9 billion in cash. That's why the speculation has tck ready to acquire Iron Ore Co. or Cliff Natural Resource. Don't believe they will.
Buy buy buy
They could have waited 6 months and paid half.
They could have abandoned the deal, paid a pittance termination fee of $450mm.
The Fording deal cratered the stock and almost put them into bankruptcy. To avoid it, they sold off some of the better development properties and assets they had at depressed prices, gave away a valuable gold stream on Andacollo for $42/oz., sold 6% voting control (15% of Class B) for $17.50/sh., and were forced (they thought so) to peddle some $3billion in junk bonds with yields approaching (or exceeding) 10%, after the bank had already extended the terms on the Bridge and Term Loans by two years. Bonds they spent the better half of the last two years buying back via dutch auction, and having to pay in excess of $1billion in bond premiums to redeem.
Decidedly stupid is what Donnie Lindsey is. Decidedly stupid.
You need to better research this company, buddy, because you don't have a clue.
Where do you get 9 billion in cash. It's more like a little over 3 billion. Still not a bad baalnce sheet for a miner these days. I am hoping there's amajor selloff in minors and maybe I can pick this up near $20.
Thanks for that. I was also considering buying Cliff but I am a little gun shy. It just keeps dropping like there's no tomorrow. If Teck does go after them, I would think that the price would be around 40% up from here....