There were no bids, after the letters of intent are reviewed, then they will ask for formal bids or negotiate directly with the interested parties.
What people are missing here is that CLF has bought a huge amount of 2040 bonds. These bonds are being held by CLF, not retired and can be sold back into the market if needed. This huge liquidity can be used in 2018 if needed, but I really don't think it will be needed and would not impact their total debt since they would be selling the bonds to pay off the bonds that are due.
Shortly after letters of intent were due on their chromite holdings, the deal was closed. Could be the same for their other assets.
You need to read about India, they have lots of low grade iron ore reserves but no met coal. They want to replace China as the largest steel producing country and have been busy going around the world to secure future met coal deposits. There will be extreme shortages of met coal in the future.
I always liked the Marriott model, CLF could operate all the US Steel iron ore mines and take a management fee. It would cut US Steel's overhead by more than the management cost since much of the overhead is spread over all the mining operations. And it would give CLF a fixed revenue flow no influenced by the price of iron ore on top of their own iron ore operations.
In the last statement from Quebec, there are interested parties from international miners and investment groups. Found it interesting no mention of international steel companies. I think their Canadian operations will be sold off to an international miner that will be shipping the ore to Asia.
is that they will not announce any participation without some type of firm offer on the table. It was a reason they did not present anything with Wabush, MFC never came up with an offer. So by them presenting a 20% interest and buying the rail infrastructure, it tells me there is some negotiation going on.
I sounds like to me that CLF and Quebec are currently negotiating a deal right now and these letters of intent is nothing more than adding some leverage on the buyers they are working with.
I would think it would be more cost effective to connect the BL Railway into MT's rail system and send the ore down to the deep water port at Port Cartier. But you could be right on the $300 million and if Quebec bought it, Alderon would be free to spend their budget on buying Wabush's infrastructure and mine.
If when the dust settles on their entire Canadian holdings and CLF can walk away with $1 billion in cash, they could easily reduce their debt to $1.25 billion and increase their cash position.
There has not been established a bid date yet. Just the letters of intent. Not sure about the Canadian laws governing what is public information, but most of these court documents are public information.
What do you think the rails and port is worth? Alderon's project has a significant amount allocated to building rail and port facilities.
to get labor back to work as quick as possible. CLF may not leak information, but you can bet the politicians will as they have demonstrated in the past. Look for some positive news out of Canada about the strength of the interested parties for BL and Wabush.
ca, yes I understand it each and every day I pull up my holdings in CLF… But they were elected on a path they did not follow. Now he has taken a path that involves market secrecy to insure he can buy back bonds at the lowest possible price. Some day it will shake out, now I am just sitting back for the ride.
This might sound off the wall but WLT should bankrupt their entire Canadian operations and buy CLF's met coal assets and leverage that purchase through stock or bond issue to build some much needed cash. Basically, swing for the fence.
Vip, if LG would have activated CASA's plan when he took over the company would be much better off today as he would have got much better prices for the assets he is trying to unload now. Debt would be close to zero and they would be generating $3 a share in profits off of US iron ore with very little money spent on interest. He didn't deceive, just did not execute.