As of the end of 2014, Canadian assets have a value of $305.8 million and US coal was $274.2 million from which they have got $175 million for the sale of the Logan mine which leaves them with $99.8 million value for the remaining 2 mines. So if they get $1 billion through the CCAA, the cash will have a $700 million increase in assets. I also believe there were more impairment charges in 2015 that would cause the asset value to go up further.
I found this as I was looking for Q4 US iron ore tonnage sold. Never did find it, everything was in 2014 year end numbers.
You can bet some at CLF knows. In the beginning LG was saying they would not get anything from the CCAA and that his game plan was to eliminate the liabilities. Now he has made comments about getting a payout on everything except Wabush.
Unemployment gets paid out of a fund that CLF had paid into. If their claims deplete that fund, they will see a rise in insurance premiums going forward but that cost does not even come close to the savings CLF will realize.
Oh, that is not current, the last reporting period is 2014. You need to go the 2015 Q3 10Q to get the current dividend charge for the quarter and that number is $25.6 million found on page 3.
Yes! Some dilution but no interest expense. Never really understood using bonds when they could have issued shares when they bought BL.
in 2014 CLF has authorized 400 million shares and currently has 153 million outstanding. I know this has absolutely no impact on the current price decline but can explain the dilution since 2014. It just seems it would be in CLF's best interest to support the share price where they can eliminate all debt by selling shares.
If you buy a house, take out a loan for $500,000 and you sell it for $400,000 under a short sale where the bank takes the $400,000 and marks your loan paid in full, you will get taxed on the $100,000 difference.
They have withholding expense that does not get charged off as taxes until taxes are established. So cash can disappear to withholdings.
You are right here, $30 million went to the coal mine loss, $20 million extra interest, income taxes on the bond sale gains, I know they are buying the equipment that Scotia Bank is secured with and not sure when they are going to come up with the $100 million on that. There is lots of places extra cash could have gone.
Did you know that it cost $30 a ton more to move iron ore out of Canada down to the US? Just not cost effective to service the Great Lakes out of Canada.
MT accounts for 40% of CLF's iron ore sales in the US.