What I like about my plan is it totally gets rid of the debt overhang. This would remove essentially all risk from owning the stock as Mount Milligan produces copper for $0.80 a pound (copper is never going to be that low while the world still spins). Tying the preferred dividend to EBITA would allow the company and the preferred shareholder to benefit from future increases in copper, gold and moly. If copper goes to $1.90 and gold to $800, preferred still gets a little bit and TC still survives. If copper goes to $4 and gold to $2000, preferred gets a lot of bit and TC thrives (as do common shareholders).
I really would rather not see warrants or anything that would allow continuous shorting of common like we had in the T-meds. I just want the debt gone and all risk removed, barring a Canadian invasion. The common stock would go up if default risk were suddenly gone, even if some of the profits were now diverted to the preferred shares.
In the case where TC tries to go it alone and depend on rising copper or moly to pay off the bonds, common shareholders possibly could end up with a big goose egg (and not the golden kind)
Yes, if you can time things, you can do well. Alternatively, if you own the whole company or your family owns the company you can do well.
If you are just a little peon who bought the stock at $7, then $5, then $3, then $2, then $1.21, you are not doing so well.
Right. So in 2016 they issue the 600m in preferred shares, pay off all the debt then there are no covenants to prohibit them from issuing dividends or getting Perron's head waxed.
You have to give caldararo a bit of slack. He has a number of biotech he is paid to spam and sometimes gets his little fact cards in the wrong order.
It pains me to see the stock at $0.31 or $0.32 when it should be $0.40 to $0.60.
Should I buy another 20K to 40K?
gatr55 gets it. If only Light had gotten it about $1.80 ago.
We are phooked. $2.55 copper was unexpected.
I should have bought the bonds about 2 years ago instead of the stock. I got greedy thinking the stock would be a better long term investment.
The only people who win in mining are the people who sell them equipment and the people who charge them 12.5% interest on money. It has always been like that and will evidently always be like that.
Hopefully they don't use the same engineering firm who designed the existing failed structure (can't reach 100%) and missed the cost analysis of MM construction by a whopping 100%.
Offer $600M of preferred shares. These shares would pay a dividend equal to 25% of EBITA. Give existing shareholders rights to buy into this offering.
Debt fully retiring using the $600M plus cash on hand. Small revolver could be opened for operating costs...interest rate would be super low with no debt.
So then EBITA is $160M, debt payment zero, preferred shareholders get a $40M dividend payment (7%!) and existing shareholders get a smaller 2% dividend.
Greedy bondholders get nothing after 2017
cohort 4 is already higher than vint. Tumor mass will be reduced to near 0 mm^3
No idea why the stock is trading at $5...should be around $25.
Simple way to calculate is their stated cash cost for copper of about $0.80 (taking a mid point). Figure they make $1.80 a pound at $2.60 copper. This results in an EBITA of $162MM at 100% capacity figuring 90MM pounds of copper. Close to your number.
The interest payment plus low copper price is killing them. Water under the bridge, but financing MM the way they did was a huge mistake. Us buying into it was just as bad.
Insane value here.
It doesn't take a crystal ball phog. Recently the shares traded at $1.17. Copper still in the toilet.
If copper drops to the $2.30 area, then even with the hedges (which were awesome I admit) TC will likely fall another 10% to 15% below the 52 week low of $1.17, putting it right around $1.
I say I won't add until a buck but I would be really tempted to add at $1.15, $1.05, etc. It is hard to wait but patience seems to pay with TC.