What does Russia and France care about Guantanamo? Terrorist hit them hard and they will hit back even harder. It does look like the war on ISIS is about to expand with countries you would not normally think would be involved.
I don't see where there is an asset sale involved, appears that they are just going to stick it to their suppliers and contract services. I guess if a coal supplier runs up $10 million in account receivables from Essar, they deserve what they get. They should have followed LG and cut them off much earlier. With all the losses these people are taking, Canada would be better off if they forced liquidation, really 4 trips through the CCAA is just too much.
Every day is a quite period. A package deal was inked for all of CLF's coal assets with Coronado when they purchased the Logan County mine for an overpriced $175 million. If they are not going to close on the remain two mines, let the market know and what the plan is now. I am sure LG knows the details of Quebec's offer on the rail and port facilities, make it public and start working on it. CLF has had all the time to buy back bonds at a discount, now is the time to build share value. But I am convinced the only thing on his mind is buying back more bonds at record low prices, no matter what it takes.
Yeah, while companies that had a dam break and is on the hook for billions in damages were both up! There is no reason why CLF should be down given the events, yet it is.
The redemption request came from a trust run by Taylor's wife for their children so Taylor had to sell those shares for Casablanca into the open market. There is no record of who purchased all or part of those shares. Look at Taylor's last form 4 filed, the footnotes outline the entire transaction.
As your ship is going down, you can take comfort that the big fire was the result of an implosion. Just a little deck hand humor.
to a mear $12,000.00! He did a much better job of managing this situation than the previous management did when Essar declared bankruptcy 3 times before!
I tried to give you a site to answer your question, Yahoo blocked it. Simply put DRI is a process where certain gases are reduced where as DR does not take it as far to make them stable to ship, but require further processing to be used in electric or nat gas furnaces. DR pellets have been around for a while but CLF has come up with one where they have removed most of the silica which is an impurity that must be removed and requires the most heat to remove. By doing this, the steel mills can convert them to DRI with less heat and time making them more cost effective. All of this is simplified and I lack the space and time to give you a full explanation, plus I am not really an expert on this process.
notice many of the steel stocks and materials stocks are turning positive, there is hope for CLF, just a problem with volume. Getting close to the halfway mark and we are still under 2 million shares.
DR ready is not a DRI and I agree DR ready is the way of the future for iron ore producers. DRI just can't be economically transported from Minnesota to all the steel mills across the country. You really need to look at the difference between a DR and a DRI pellet.
It could take two years, I don't know. The one thing I do know is the high short interest in this stock and with the high percentage of shares held by large long term holders, we are going to see a short squeeze. Just need a catalyst such as a positive asset sale and corresponding debt reduction. But this short position has created 10's of million of counterfeit shares as we have owner of shares that allowed them to be borrowed and new owners of shares that bought those borrowed shares. And when those counterfeit shares need to be covered, there just won't be enough real shares available to buy.
Unfortunately events like what happen in Brazil won't cause this short squeeze, it has to be an event that is CLF specific and so far management has not delivered. We get news on the canceling of the ESSAR pellet contract, but all we can do is speculate on what LG's end game is, so the stock price slips. CLF wins a court judgement against Essar and the whole thing is ignored by the markets with all the filings against CLF in the Chapter 15 Essar bankruptcy that basically states the Ohio courts are wrong. It is as if reality does not matter in this stock and CLF is not doing anything to support reality.
LG is very well connected, smart and very calculating thinking many moves ahead. CLF is headed in the right direction, it just takes time and we will see this short squeeze.
DRI was first produced in China around 500 BC, modern day production started around 1970. It is expensive to ship and hard to store since it easily rust and oxidizes. It must be produced near the steel mill it will be used at and at quantities that will be used right away, not from some out of way mine in Minnesota. Logistics has been and always be the problem with DRI. The other problem is the time and energy required to convert iron ore pellets to DRI as Nucor discovered with their DRI plant.
CLF has solved all these problems with their DR pellet line and all indications is this is the future for these steel producers. Producing DRI pellets in Minnesota is not. Now CLF may need added reserves if their DR pellet line really takes off, but it is not required now or in the extended future. And it sure isn't worth putting your efforts in with group that can't be trusted. They would be better off partnering with Nucor or MT.
DRI has been around a long time, the problem is the shipping of it. Due to explosion problems you just can't ship it without providing a sealed environmentally balanced chamber. That is one of the reason that CLF developed the DR pellet that can be easily shipped to the steel plant where it can be easily processed into a DRI pellet. Essar is just blowing smoke up the legislator's ------ DRI just won't happen but as long as they can convince them it will, they won't have to pay back the State.
Very little of that QE has made it back into the general market. Government bonds and mortgage backed securities. Raising rates is going to influence future government spending as the government's interest expense is going to go up. As I see it, the government really needs to monetize the debt owed the Fed since the interest paid the Fed just stays in the government. Somehow the government needs to balance their budget, just not much hope in that as long as we have programs like Obamacare and duplicate agencies like Homeland Security (like police, FBI, CIA and NSA is not enough).
Bart, this is where CLF should come in. They need to provide China with management to build their domestic pellet business and convert their steel mills to a cleaner process. China will be able to replace dirty imports with a lower cost local supply chain. Massey Coal did this for the Chinese in the coal business, CLF can do the same with iron ore and cut those over producing majors off at the knees.
Having experienced 17% mortgage interest rates in 1979, construction loan rates of 13% in the 80's and the excitement when mortgage rates got below 10%… a percentage or two is not going to cause the end of the world, people just adjust. And through all of that, home prices in general increased. If there are tent cities in Seattle it is because there is less than one month supply of housing on the market. In Seattle the problem is not enough construction is taking place and most of that is due to banks not lending for spec construction and land development. For construction of specs, we need bank financing and the banks won't change until interest rates go up. What people fail to realize is that of all the homes sold, about 70% of them are existing homes, 25% is completed new construction and only 5% is people that will go through having a house custom built. Failure to provide spec financing the market is seeing a reduction of 15% of new construction, while the other 10% is being provided by private financing. Then by increasing construction, the money from building will make its way into the economy and spur growth. Construction is by far the largest industry in the US and can be found in every corner of the country. And for it to grow, we need to see a modest increase in interest rates. A 6% bank construction loan is much better than the 8 to 12 percent private funds!
Productivity and technology have done more to lower commodity prices than changes in the money supply. During the Klondike gold rush, they needed $90 worth of gold per ton to make a profit, now they need $10 a ton. Oil prices have fallen on the new technology used in the oil fields of N. Dakota. Iron ore supplies have increased off the ability to use lower grade ores and convert them into high quality pellets. Yields in ag products like corn continue to increase with the development of satellite controlled farming.
CLF is a leader in this value added mining and is making advances in pellet technology. No longer can a miner just dig something out the ground and sell it. And with the low prices in these commodities, the supply chain will have to be local.