Red, thx for the info. Hopefully at least some of the remaining 80% is US supplied. Seems a shame we apparently do not have ability here to make the special beams.
to have the state's taxpayers kicking in on such a large project that would be using foreign steel, made from foreign I/o. That's very reason tax paying workers and industries are being shut down in the state.
you better take a serious look at what's happening with aluminum smeltering and production in the US and NA.
Obamas environmentalist friends want all industry that has a large carbon footprint gone from these shores. They're agenda is to make the USA a model "green" state and they've been working on it for years. Not realizing that China and other countries are destroying everyone's environment (it's the same air and water)much faster because they do not have or want the pollution technologies we have. Meanwhile, through loss of a production economy, we lose the revenue to support what once made us the greatest free nation in the world.
effect on business. Here's today's quote "By another closely-watched measure, job openings have increased, but hiring remains stagnant. The Job Openings and Labor Turnover Survey (JOLTS) is a favorite of economists who consider an increase in the number of workers who voluntarily quit their jobs to be a bullish sign for the economy"
Think about that for a minute. While they may be correct, (don't get me started on economists) I'll offer up what I see - And I see a lot of people who have figured out the work/reward ratio favors gov't assistance/welfare over working. If you think that's odd, take a close look at what just Obamacare alone is doing to lower income paychecks - particularly those near the gov't poverty threshold for gov't subsidized and employer offered medical insurance. If you know people in HR roles, ask them if over the last year they've seen an increase in people turning down jobs because they would "lose benefits" due to "higher" income.
IMO, I'd bet those "economists" for all their modeling and computer projections never saw that as a possible outcome. It's effect? All those benefits are collected from a shrinking workforce while we indoctrinate new generations on how the gov't will give you what you need to live - And I use the term "live" loosely.
OK, sorry for the rant, but jeez! come on people!
Vip, please stop. IF he did a buy back, the s/p would go up - but for how long? All the bills would still be due including interest on bonds. Shares would probably be re-shorted and CLF would be out $200 mil. Far better to retire debt, thus less interest to pay and have s/p gain on a longer lasting fundamental change.
re: your note above "although 7% is a slower rate than in the past)" granted the % is less, but consider this: In 2005 China GDP (in US$$) growth rate was 11.3% on GDP of 2.27 trillion. In 2007 it was 14.2% on 3.52 trillion, but in 2014 it was 7.3% on 10.36 trillion. Which year had the greatest amount of growth?
While I agree somewhat with you that the potential for bk exists, I also believe that prices for I/o and steel can only drop so far before the cost of logistics and shipping become obstacles to importing/exporting. When that happens those commodities become regionally supplied. And IF clf holds the market share for the Great Lakes steel makers, AND the GL steelmakers are still relevant - then clf will be ok. Steel is still in use.
held until conversion (or just past the divy) providing CLF stays near this price?
No, and I do not believe your number. It sounds just like the one you stated for Vale from SA to NUE Louisiana. And FYI, the cost depends on the logistics from and to which port/part of the GL you're shipping to.
you do know MT has their own I/o supply and shipping at Port Cartier, correct? Along with their joint ops with CLF
would have thought the loss of pellets out of Brazil would have led to at least some pick up for CLF pellets unless none of those Brazil pellets went to the N Amer market. Where were they going to?
New York, November 16, 2015 -- Moody's Investors Service, ("Moody's") placed Cliffs Natural Resources (Cliffs) B1 Corporate Family Rating (CFR), B1-PD Probability of Default rating, Ba2 first lien senior secured notes, B1 second lien senior secured notes, B3 senior unsecured notes and (P)B3 senior unsecured shelf rating under review for downgrade. The SGL-2 speculative grade liquidity rating remains unchanged.
Issuer: Cliffs Natural Resources Inc.
..On Review for Downgrade:
.... Probability of Default Rating, Placed on Review for Downgrade, currently B1-PD
.... Corporate Family Rating , Placed on Review for Downgrade, currently B1
....Multiple Seniority Shelf (Local Currency) , Placed on Review for Downgrade, currently (P)B3
....US$544.156M 7.75% Senior Secured Regular Bond/Debenture (Local Currency), Placed on Review for Downgrade, currently B1
....US$540M 8.25% Senior Secured Regular Bond/Debenture (Local Currency), Placed on Review for Downgrade, currently Ba2
....US$500M 3.95% Senior Unsecured Regular Bond/Debenture (Local Currency), Placed on Review for Downgrade, currently B3
....US$500M 4.8% Senior Unsecured Regular Bond/Debenture (Local Currency), Placed on Review for Downgrade, currently B3
....US$800M 6.25% Senior Unsecured Regular Bond/Debenture (Local Currency), Placed on Review for Downgrade, currently B3
....US$400M 5.9% Senior Unsecured Regular Bond/Debenture (Local Currency), Placed on Review for Downgrade, currently B3
....US$700M 4.875% Senior Unsecured Regular Bond/Debenture (Local Currency), Placed on Review for Downgrade, currently B3
....Outlook, Changed To Rating Under Review From Stable
hmm. and yet China is able to take that dirt, shipped all the way from Australia, and make steel that is, well, "dirt cheap" and ship it around the world. Every increase the interest rate makes the dollar stronger and the resulting commodities, materials, and products made in the USA that much less competitive on the world market. China's end game is to remove competitors.
I do think we are on the same page with respect to local sourcing as there is a logistics ratio between transport cost and price - but that only applies when markets are fairly traded and not subsidized
One would think they could use some of the ABL a little at a time, so as not to raise the prices, then replace it with asset sale money. Clf must know by now approx. what the asset sale potential could be. If they do not capture some more bonds, they are truly missing an opportunity and as may be the case, are really struggling just to conserve cash and stay in business. Hopefully CLf is buying. Perhaps Taylor's stock sale is somehow linked to "friendly" bond purchases
Interesting comment. I am surprised it has only taken 5-6 years for people I know to get right back into lot of debt after nearly losing their homes in 09 (a few did). Got youngsters (and middle agers) who have taken on considerable debt with all the nice toys and new vehicles but do not have what I would call income/job security. In fact several have jobs that pay less / less hrs than pre-2009. And IMO the long range economic outlook is even shakier now than then. Guess I'm just old fashioned in my financial ideals
Not going to happen. And been discussed before, do you have any idea what it costs to engineer and put in a line that meets the heavy duty requirements of I/o hauiing? Surely you are not suggesting they could truck it over to MT's line and still make a profit
Surf, while I agree with your comment on recession vs strong dollar, an interest rate hike(s) will not be good for commodities, which in turn are always (IMO) the precursor to a market collapse. I'm a little puzzled now about the disconnect between commodities prices and the market.