I think it is setting up for Quebec to buy both the BL and Wabush rail systems along with the dock facility at Sept Lles. Then they have buyers for BL and Wabush mines that will be able to use the government owned transportation systems at a discount which will save them $20 a ton without the hassles of owning a rail system or upgrading a dock. Again, Quebec would not have come out with an offer to participate without some deal on the table. Quebec buying the rails and dock along with 20 percent of BL is a given, we just don't know the final price.
First, I don't thing you could buy CLF for $15. Second, I don't think BL will go for $2 billion, I am sticking with my guess of $1 billion. Once CLF gets rid of the Canadian assets, they will have $1.25 billion in debt, $700 million in cash and be earning $3 a share of US iron ore and Asia Pacific. That will make their share price jump to $36 a share and it could go higher if Wall Street gives them a PE that goes with a manufacturer do to the extra margins associated with pellet production.
And they still will not have the rail or port facilities.
You know, based on the price and volume, there might be something there that will break after hours. In the past, normally news like this hits the media about 2 hours after the move in the stock. I am going to hold my judgement on this until tomorrow, the death race has not thrown out false leads in the past.
It goes back to my thoughts on MFC that holds the royalties on Wabush. If Alderon bought it, they would take the rail and port facilities and never touch the mine which does not work for a company that hold the mineral rights. The Wabush mine is totally worthless without the rail and port facilities, so MFC will need to step up and buy the whole thing for more than what Alderon is willing to pay.
until June 19. This was the only release that I could find today which points to some type of deal must have developed off the letters of intent.
MFC needs this mine to be operation if they want to see another dime in royalty payments. They will step up and buy it if no one else comes to the plate.
Nothing published on this message board will move the price of this stock. Something happened to give CLF a 500,000 share spike in volume with several 50,000 share spikes and the price to move up. I think there is something here as the posting listed a letter of intent that contains a low and high bid which is required.
Yes, I saw that and pulled up both the CCAA and FIT Consulting and can't confirm it but that doesn't mean it isn't there because there is a ton of documents.
That decrease is easily accounted for with the shut down of the US Steel pellet plant and further decreases may come with the shutdown of Magnetation.
Are out from the Lake Carriers' Association
3,916,968 tons, almost twice the amount that was shipped in 2014 but less than the 4,404,841 ton five year average. CLF's share of those shipments should be slightly less than 2 million tons for the month.
At current bond prices, $600 million could reduce debt by $1 billion. Reading the 10Q, CLF still has money they can draw off their new secured bonds and will be able to buy these bonds before any asset sale is announced to capture the lowest bond prices. With CLF's current liquidity, they are sitting in the driver's seat to get the biggest bang for the buck.
Jeff missed the big move up a couple weeks ago and he will miss it again when news breaks and the shorts run to cover all these new positions.
Just like Noront, the interested parties will be identified and the Quebec participation will be outlined. Because the government is involved, most of the actions will be part of the public record.
I was reading the email correspondence between the Court and Tompkins from CLF when the chromite deal was going down. It was surprising the details that were released. There was some players that wanted to bid on the assets but did not submit a letter of intent and were locked out of the bidding.
as there is no real news. Reality is iron ore prices are at a low point and CLF remains profitable, has paid down debt and continues to build cash. Asset sales will happen and when it does, profits will increase, debt will be reduced further and cash will increase. Going to stop the short term play and not concern myself with these short term moves in the price.