I am going to put a note in that explains how these will perform just as well in the CEO position at a much lower cost.
Totally worth the $0.99 (they on sale now, so I only need to liquidate about 20 shares of TC to cover shipping)
Surely we can scrounge up 10 million or so to buy 50% of TC and replace everyone on the board and management.
I dunno, but I am starting to even get a bit concerned about the 2019 bonds I bought. We picked a real stinker, eh private?
YES! I did this back when the stock was $3. I bought the stock at $3, sold $4 calls for $0.10 and they expired worthless when the stock dropped to $1.50. I only lost $1.40...what a great income!
Trading this prints money faster than the Fed!
Don't expect that to change this year. It is going to be stuck in the 5 or 6 range before it breaks out to $20 to $30 next year (around Sept 2016)
Have you seen how old JF is? Are you quite sure he will be here next year?
Issuing units when the dividend is 15% is essentially financing debt at 15%, correct? They can do better than that on the open bond market.
It seems to be a bug in Yahoo. I also saw the collapsed messages, although dragon's response today is showing up.
This is why the 2019 bonds are such a good deal. They are rated CCC which is very high risk junk, but really they are pretty good junk (not investment grade, but not worthy of CCC). The stream you pointed out would remove $350m of debt and improve cash flow.
I may actually add another 10 or 20 thousand of the bonds, especially if they drop down to the very low 90s.
Great post pedej. I also used to own a bunch of shares (40,000 at one time) but now have pared down to 7,000. The last big batch I sold at a terrible loss around $1.38 a share. I really had to wince when pressing the sell button but look at how good a move that turned out to be!
The 12.5 bonds just make sense. A huge return, much lower risk than the common shares, and you can buy them below par. I agree with you that in the event of a bankruptcy, the 12.5 bonds will get something...bond holders almost always end up with some part of the bone even if not secured. Stock holders can get wiped out so fast.
We are a long way from bankruptcy talk though. There is enough scratch to pay off the senior secured by doing another stream with Royal if traditional financing can't be found. Royal doesn't want to see MM go under now that they are finally getting gold shipments. This would absolutely destroy the stock price though, giving away even more of the gold potential. We could see $0.50 a share stock price in that scenario and the 2019 bonds would still be ok and still churning out 12.5% yearly payments.
I doubt we would even have 10% of outstanding shares if we pooled together every poster on this board.
Exactly. They are not burning through cash. A good manager could come in there and make the mine profitable...perhaps do Ultra's suggestion of buying some mobile crushers, trim some salaries, renegotiate some vendor contracts. It might not get the shares to $3 but the bonds should do ok.
Eh, the cash burn rate is just not there for a default right now. Shareholders likely will get screwed but many things will happen before the bondholders take it on the chin. The senior secured notes will be paid off, likely with either selling TC moly assets, more dilution of shares, or selling more of the gold stream to Royal. Meanwhile, the 2019 bonds will collect 12.5% in 2015, 2016, 2017...
When shares get down to about $0.20 I will start worrying about bonds.
Perhaps, but I really don't think TC will go to bankruptcy. What I think will happen is they will Yahooscrew over shareholders (some sort of Tmed type deal after the 9.75's have been paid off). Shares will go a lot lower than 1.15 before the 12.5 bonds are in trouble.
Still, I agree with you that the 9.75 would be a good purchase...I want it closer to par though...there is quite a premium on it right now.
Is this really ultra or did someone hack his account? Their was used properly....twice!