I predict they will go balls to the wall on TC moly in Q3 and produce 9m pounds of moly. At $4 per pound cash cost and $13.50 average selling price they will have cash flow there of over $80m.
That should drive quite positive earnings and only mean a drop of about $0.10 in stock price.
I am not overly optimistic. I bought 60 Jan $2 calls and sold 60 Sept $3 calls for $0.70. This means I profit if TC stays above $2.70 but have no great hopes of it going much past $3. If that is what is considered optimistic now, we are all in trouble.
Sell the moly mines. Pam said the mines would require 8m to 10m a year for C&M plus 35m over two years for work on the tailings dam. Selling the mines at almost any price would give them much more cash flow through 2017 when they need to refi.
Really Ultra? Either Perron lied to us when he said a partial stripping would not produce any moly until 2017 or you lied to us when you said a partial stripping could get us into moly late 2015. Who is lying?
Who is going to buy Endako alone? You would have to trick someone by packaging it with other stuff. Selling Endako is like trying to sell a timeshare for a condo in Detroit.
I don't care. 700m in the bank, 980m of debt with a mine that produces $200m a year profit after the debt is paid off.
Slap a 10PE on 200m and you get 2B market cap. Who gives a hoot about TC and Endako then?
Yes, it is why they have moved staff to Milligan and focus so much on improving the crusher and such. It also explains the yes, no, can't say answer to if there has been talks of selling the company. No they are not selling the company but they are selling Endako, Thompson Creek, and Langeloth. They are probably keeping Berg for future development although I don't know why they would bother.
Was Mt Mulligan on purpose or a slip up because I really wish we could take a mulligan on Milligan.
You sell the moly mines for 300m to 400m, put that money in the bank, then you are generating $216m from Milly, paying 90m in interest, 60m in capex (for secondary crusher) and you are left with positive $66m added to the $216m, plus the 300m to 400m from selling the other mines and you have $700m in the bank in 2016 = easy refinance.
"We are working on other options and alternatives right now"
"We would like to be able to make a decision of what we are going to do at Thompson Creek in the near future, in this quarter, the 3rd quarter"
Options and alternatives = selling the moly mines?
Are your figures for the $55m at MM accounting for extra costs running that much extra material (trucks, shipping, etc.) and are you accounting for the gold streaming agreement (Royal gets half the benefit for none of the expense of increasing gold production, yes?)
At TC, are you subtracting out C&M expenses that would not need to be paid if they were to proceed with full bore phase 8 stripping?
They seem to get more ore than I expect every quarter. I am going to bet they figure out a way to get ore in 2015. $80m is only one quarter's profit mining $7 moly when it is $15 a pound.
Why would they close TC for 2 years? I know it was in the CC but they can't be serious. Moly is headed back to $14, $15.
Perhaps we have this wrong and Mount Milligan will not be sold. Perhaps what will be sold off is Endako, the Thompson Creek moly mine, and Langeloth. MolyMet could be a buyer if they have any money leftover from the fiasco that is their Molycorp investment.
If they could get 400m for the previously listed mines, they could install a $75m secondary crusher, reach 65,000 to 70,000 tons per day production, and generate 100m a year from MM after interest payments, all while keeping 500m in the bank for future bond refinancing.
Maybe 400m isn't the right figure. Maybe they would have to throw Berg in there too as a sweetener.
They can do phase 8 stripping and not spend $75m on a secondary crusher and still get to full production at MM and be mining ore at TC in late 2015.
Why would they choose to talk about installing the crusher and downplay phase 8 TC stripping or say they need to find funding for it? Perhaps they are currently in a deal to sell TC and Endako while keeping MM. That certainly is a thought that just came to mind. They will upgrade MM at the expense of TC because they will not be owning TC for much longer.
There are only a few of us on here who think a buyout is a possibility. Certainly not enough to move the share price. I have only bought options today anyway.
If they were somehow able to sell Endako and use the proceeds to fund phase 8, that would get us above $3.