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.
Vip, what lucetteo is looking at is their current receivables is $53 million, that is really low and is way out of the norm and cost cuts does not explain for such a drop. It is a good question.
Look at Q3 of 2014 and you will see an income tax receivable of $25 million, then Q4 of 2014 you will find an income tax receivable of over $200 million. It looks like 2015 is setting up the same way as CLF pays withholdings throughout the year in excess of what their end of year tax liability. Much of this could be the result of the income gain on buying bonds back at a discount and the impairment charges they took. But a lot of their cash drain could be the amount that is paid into these withholdings. Won't really know until Q4 results are out.
Also, be aware that all Federal tax refunds are taxable by the state and local taxes. That is why they had a net tax receivable of $175 million ($225 million refund from the Fed and a $50 million charge from the state).
Most of these docs have to do with sale activities outlining commissions and paying for those commissions ahead of other disbursements. They must be close to the end. Most of the docs released were not in English and I am not 100% in French.
Lot of that could be putting Essar on a short leash knowing they were headed back into the CCAA. CLF has a claim for a little more than $12,000.00 against Essar which is a very low acct. receivable. CLF also heading into the winter months ships ore to the steel mills for storage and then bills them as they use it because CLF does not have enough open water storage on the Great Lakes.
Think about it, MT and Nucor could be providing the majority of the DRI pellets around the country, using CLF's DR pellets at their input.