He wants the best price for the shares and does not want to drive the share price up before he starts buying, same applies to the bonds.
Inventories up to $487 million, look for another $500 million of debt at face value removed by year end as $225 million of this inventory will be sold.
I am going to wait for two days, see if we have a pick up in volume. We will be able to tell if the company is picking up 2 million shares a day.
Come on Jeff, when has all that information been put on an income statement? All you question should be revealed on the CC or available when the CCAA releases it.
You need to understand the difference between GAAP and Non GAAP earning as they apply to the estimates and actual, please go back and do a little research on that.
Go back and read the 2014 Q2 income statement, compare it with 2015, your answer will be very clear. I am not going to do it for you, otherwise you will never learn.
From May to June Chinese imports to the US dropped by 36.9%, YTD 2015 has dropped 4.6% from 2014. From the beginning of 2015, China never really had increased imports into the US, most of the dumping was from Korea, Turkey and Brazil.
I came in at 32 cents, only differences is based on 40% of Great Lakes Iron Ore Shipments in Q2, I have 6.4 tons. You listed $46 million interest, I have net interest at $42 million. Only wild card is due to impairment charges earlier, DDA may be closer to $38 million.
You are right CCAA will not be addressed other than CLF's goal was to eliminate the $700 million in liabilities. On contract extensions, you are not going to get anything from them as well as they don't negotiate in the public. You have to ask yourself, what is MT or AKS alternative, no other company can match CLF's pellet price and service level. Not even MT's integrated pellet facilities. It has been well published that many of the integrated supplies have been shut down like US Steel and Magnetation. CLF has picked up the slack because of these shut downs.
Not sensitive, just tired of people not reading what is perfectly clear. I challenge the shorts here and it does no good as they always come up with no specifics other than the magical hand of WS… I have laid out a very clear way CLF can pay off these bonds, address that and we can go from there.
1. 2018 bonds due is $430 face value, $210 current market value.
2. Total inventories $400+ million fully paid for, no balance due to credit line.
3. Sell off half by the end of Q4, gives CLF $200+ million.
4. Kick in $10 million from cash and the 2018 bonds are gone by the end of 2015.
No money needed from asset sales, cash, tax refunds, DD and A cash...
My money is on him announcing a stock buy back and he will continue to apply his stealth pattern in buying back bonds. As long as iron ore stays low, he should be able to get between a 25 to 60 percent discount on these unsecured bonds. The $900 million that they have drawn out on the secured bonds will have to be purchased at face value and they can't buy them back for a couple years.
Do you even know how much of the 2018 bonds are due, both face and market value?
Again, he retired $1 billion of debt in 9 months, I would say he is on track. And he pays the interest every month because he can. You say debt is a problem, just give us the specifics and someone here can address them one by one. I have given you every place where money can come from to pay this debt off, I expect nothing less from you to address each one.
Why does he have to explain, read the balance sheet and you will see for yourself that CLF has enough liquidity today to pay off this entire bond without putting a dent in their cash. By Q4 when they sell off half of their inventories, with the current market price of bonds, they could retire all of these bonds. Really, between paid inventories, accelerated DD and A, tax refunds, future tax credits and future earnings they can retire all their debt by the end of 2018. All of this is available to see and is the reason why shorts say there is a debt problem without giving any specifics, because there are no specifics. And Mr. Gonclaves is not going to run his company based on what baseless issues shorts are touting on message boards like this.