Great choice of a CEO. Our future is in North America, especially Canada, he has lots of experience in NA and can get project, Chrome, Nickel, IO moving forward and could in the end help get a sale of the whole company.
Sentiment: Strong Buy
New ceo, buyout, china recovery, IO global supply not as robust as thought, steel demand up, cost cutting of unprofitable mines.....take your pick.
You are not taking into account idling of wabush and disposing of Ampa property and debt reduction in relation to interest expense reduction that flows through to expanding margins.
CLF could buy the whole company for under 60 million, it's stock on the VSTE is 4 cents....article is a joke, beside the new ceo will resolve this one way or another.
n increased iron ore demand has triggered this latest dry bulk rally, which could get yet another boost during next week, when China is expected to return to the global market. According to this week's report from shipbroker Intermodal, "the surge in iron ore trade has translated into a massive boost in daily earnings for capes; with the demand for such vessels skyrocketing over the last couple of weeks. The gains noted for Capes are certainly impressive when considering that rates have recovered from below US$ 4,000/day noted back in June 2012!"
According to Intermodal's SnP broker, Mr. Tasos Papadopoulos, "as a comparison, this time last year, iron ore had “crashed” down to just US$ 86/tonne, in a sudden shift that took the industry by surprise. This had primarily been the drive for last year’s seasonal round of restocking, however it seems that it was nowhere close to the excessive demand witnessed over the past couple of days", he noted.
He added that "Capesize vessels provide the best insight into the health of the Chinese economy; and despite analysts having projected a slowdown in Chinese growth; China continues to import in order to replenish its supply. China's aggressive iron ore restocking has encouraged a surge in demand while near-term prospects remain promising!
China is forced to import iron ore, as their inventories have declined significantly, down by 27% from their February 2012 highs. There have been large volumes of Chinese buying and restocking from both Australia and - more importantly - Brazil and the year could end on a high note", Papadopoulos noted.
But the question that's on everyone's mind at the moment is, how long will this latest Capesize rally last? According to Intermodal's analyst, "we expect Capesize rates to remain firm as long as Chinese iron ore restocking continues. Having said that, we have several examples from the recent past, where once the seasonal restocking process was over, we witnessed drops in freight rates which were just as quick as their preceding rise.
However, the present surge looks likely to be sustained for a bit longer, as it appears to be supported by improving fundamentals in China's steel production and consumption. All the evidence points towards the fact that steel production and consumption in China is to continue to steadily grow, maintaining China’s iron ore imports at healthy levels in respect to the supply of vessels", the shipbroker noted.
Sentiment: Strong Buy
What's worth pointing out is the cost of capital is so low. Plus est for OI future prices are trending up in the out years. China's import at port inventories are extremely low getting. Mill inventories are now under 14 days, domestic oi production from mines is in decline while mines production rate has increased to 82% (They only have low low grade ore left, resource depletion, low grade marginal cost increase much like getting oil from oil sands, the next ton is 100$ to mine then 105, then 108 etc etc)
Finally over 90 million tons of global mine expansions have been deferred from 2014-2015 to 2018 and beyond and as always in the mean time the finite nature of resource depletion ensures a higher io price and tight supply.
The restructuring provides for the cancellation of all outstanding shares of Lone Pine common stock.
How is that in the best interest of the company? The share holders are the company not the board and management trying to secure jobs.....With all the assets they could of sold the whole thing for 400 million and got each share holder .90 cent a share. Total abuse! could of went BK and sold company and everyone wins accept the management...but hey also long as they are taken care of. BS
asset sales don't require a halt and usually announced premarket, it's either bond restructuring, total sale or BK
these rates translate into a much higher dividend. .50-.60 by year end for 2014, plus net debt is now under 60 million, we have the absolute lowest cost in the industry and we are primed for growth through acquiring new ships from those who went BK over the last few years and the lack of supply. The stats say that if you want a cape built today you won't get it until late 2015 -2016, lots of ship yards went bk and there is not a lot of easy money to fund them. bullish turn after the worth depression in shipping ever.
Sentiment: Strong Buy
The asset is non-performing so getting the cash will be a positive to fund Bloom lake and or reduce debt. BDI is up another capes up 2000$ a day which are IO specific carrier vessels. I would like to see CLF sell their Australian assets for 500 million and get bloom up and running at full capacity by 2014 2015. Those interested in Dry Bulk see BALT. just closed secondary net debt under 60million and a excellent dividend policy with rates up payout could go to .50-.60 by year end
I'm invested in BALT and CLF as away to play the pick up in IO demand as well as BDI returning to normalized levels.
Macro environment has changed, very bullish for this low leverage bulk shipper. Fleet expanding, debt reduced, lots of cash. Plus dividend will be increasing drastically.
They have very good assets, debt is high on the other hand, but the real problem that keeps a lid on the stock is that they are not self funding and have to keep borrowing to fund growth until 2015 when they predict they will be self funding....until then...if oil price were too decline and capital markets tighten they could see troubles.
Chinese steel production reached a record 91.94 million metric tons in August, 17 percent higher than a year earlier, data compiled by Bloomberg show. Stockpiles of iron ore, the main ingredient, are 24 percent lower than a year ago, according to Beijing Antaike Information Development Co.
Sentiment: Strong Buy