So golf is the opposite of iron ore, we want the price of iron ore to go up and your golf score to go down.
There is a really good chance that the area will never be developed as the only way Ontario will pay $1 billion is if Ottawa pays up $1 billion. And Ottawa feels that if they put up the $1 billion, Ontario won't come up with the money, simply because they just don't have it. Then there is First Nations that will take money away from the miners at every turn. The environmental problems associated with mining and processing chromite is so extreme, First Nations will extort money well into the future.
Anyway, the development is out at least another 10 years and most of the junior miners involved will go bankrupt before it can be mined. If CLF wants to get back into it later, there will be some great deals, but I don't think mining in Canada will ever be profitable. But they should have got at least $50 million for the assets!
Could be, but Investissment Quebec said there is a group of Asian buyers looking to buy BL and it just seems reasonable that Wuhan would not want to walk away from it. And with no additional money, they could be one fifth owners.
There are two rail systems servicing the area and currently the BL and Wabush systems are tied to the eastern route owned by Rio. With a short addition, those lines could be tied to MT's system and they could control three quarters of the ore coming out of the area and be shipped from their dock system.
MFC interest in Wabush is really clear.
CLF owns all of these assets and it is clear that they will be paid for the sale of those assets up to a specific amount which should be the current book value, just like the chromite holdings where the court allowed to take out the asset from the bankruptcy and CLF could sell it for $20 million. Since that amount was less than book, CLF does not have to pay money to the court to be divided among other claims.
By CLF getting approval to sell these assets tells me that there must be some deals in the works. All of this is speculation on my part from the research I have been doing over the last week. All I ask is for people to do the work as well rather than just shoot off baseless statements that has overtaken this board.
Since they own 18% of the mine, they could be leading a group of Asian buyers to acquire BL using their current share as their payment into the purchase. With no further investment into the mine, they can retain their future interest in the mine.
The railroad assets are another story, MT could grab both the BL and Wabush rail system and direct most of the area's ore down to their dock facility.
On Wabush, MFC gets royalties and needs the mine to operate to get paid, they maybe the only party that will benefit with this mine operating.
Getting the court to allow CLF to negotiate and sell these assets points to sales in the near future, hopefully for more money than their chromite assets.
Low rates are part of the restrictions that is keeping money out of the hands of builders. On the buyer side, low rates keep people on the fence and when you see a tick up in interest rates you see a pick up in buying as people try to lock in to the low rates.
You have to realize that interest rates is just one more cost of construction that represents about 2% of the cost of a house. If they doubled the interest rate and allowed the builder to double the number of specs they can build these builders will pay 4% interest to capture 20% profits. So no, low interest rates are not that good. However a large increase in interest would cause harm, but I don't see where 5 to 6 percent would be bad. I remember at time when 17% was the norm and we thought everything was coming up roses when it went below 10%.
Right now many builders are paying 8 to 10% for private capital to build specs.
The only thing holding back the US economy is the low interest rates and loan restrictions. Builders can't get loans to build the number of spec homes that are needed to meet demand. As a result, construction cannot reach the levels to historical levels. We are seeing markets where you have multiple offers and houses selling for more than the asking price and this is happening in markets that this has never happened before.
We need to see all of this money that is currently sitting on the bank's balance sheets to move out into the economy. As long as these banks are not charged interest on this money, it will just sit there. I know the market looks at any rise in interest rates as bad, but in this case it will get the economy moving forward with strong construction spending.
That is not how a bankruptcy works, you have secured assets claims and unsecured claims. The secured claim is paid from the sale of that particular asset and if there still money owed, the remainder moves over to the unsecured pool. To put it in simple terms, if you were to go bankrupt and your house is sold, that money from the sale of the house goes to the bank with the first lien, then it goes to the second liens before any of the revenue is handed over to all the other claim holders. With CLF, the parent company is in first position for the real estate holdings. If they sell those assets for less than they are owed on the lien, no money would be left over to be divided by the other claims, but they need the court's approval to do so. But if they sell it for more than the lien claim, the court would require them to pay those funds into the court to be divided between the non secured claims.
was part of the Canadian bankruptcy, CLF successfully finds a buyer and sells the assets, the asset is removed from the bankruptcy and CLF will keep the entire $20 million. Is this what CLF has planned for all the other assets the parent company owns? They have buyers for all those assets now? I have been trying to piece all of this together and coming up with more questions than answers. Nothing out in print that specifically addresses this issue.
At the price someone can pick up BL plus the amount Quebec will kick in and the union concessions, the cost to run the mine will be a fraction of what CLF paid. Now it may not be as low as what Rio's cost are, but it will be low enough for an Asian steel company to lock in a good long term price.
Can't buy or sell, blackout due to earnings…. Check back about a week after earnings when the insiders are free to buy and sell.
They mined enough ore, just don't sell much during Q1… happens every year and is by design due to the need to stockpile iron ore at the mills ahead of the winter months when the Lakes shut down. So CLF builds inventories during Q1 and sells 3 million tons which is still profitable, just not the $1 per share they hit in Q4.
This is the problem with scrap based steel production, very labor intensive to process the raw material. These companies will need to increase the use of DRI pellets to be profitable.
If MT can get control of the Bloom Lake and Wabush railroads, they could take away a large share of Rio's rail traffic in the entire area and be able to expand their port facilities.
It is much clearer than going short. Once it settles above $35 the next resistance is $40. Face it, there is nothing wrong with the flooring and the consumers will return to the low cost products LL sells as home owners tend to make purchases based on what they see, not what they smell. I have always used copper water lines in my houses and stayed away from PEX due to the plastic leaching into the hot water. Countless lawsuits and news releases, buyers still take the house with PEX because it cost less and they don't see the pipes.
I have tried to make sense of this from day one, in the bankruptcy equipment and structures are listed as assets to be sold to pay claims but nowhere does it mention the actual sale of the mine or rail road. It is like the Bloom Lake Partnership does not own the mine or railroad and leases them from the parent company CLF as I have found reference to the leases the Bloom Lake Partnership has, but it does not list who they are leasing it from.