Iron ore business will evolve to a localized supply chain as the percentage of transportation cost over revenue increases. Advantage is going to the companies that can use lower quality localized ore and provide a high quality pellet, just like CLF is doing in the US market. Really, this is good news for CLF's US operations.
Jeff (Orangutan) and Robert or Bob (Smickersmack and the Sheep Dip are one of the same) are both trolls and should be ignored. Research each shows no basis for "pro" status.
Now the company can move to stop the short action. They cannot stop here, they need to take their battle to the media and finalize some asset sales.
This is one of the best posting thread I have read in a long time on this message board. Very informative without all the goofy attacks. Thanks!
We knew this was going to happen but we had people like Skittle that was trying to tie this event to amending all of CLF's debt, including their long term debt which is unsecured corporate debt. In any case, CLF is free to implement their restructuring plan of buying back shares and selling assets.
This should tell you something, since CLF won that lawsuit, it shows how valuable these long term contracts are. Also, MT extended their contract with CLF that tells you that MT interest is what is good for MT. They could be a serious buyer of any of CLF's assets that will benefit MT and not to "save" CLF. Honestly, sometimes you read into something that just isn't there.
MT is not interested in Asia Pacific, could be interested in Canadian operations for the transportation network. CLF needs to look to India to unload their coal assets. But all of this is immaterial, CLF needs to address the short position now.
Goncalves believes BL will be a valuable asset in the future as US demand will grow and US iron ore assets will be used up. CLF will be better off finding a 50% JV then selling the asset.
A better question is what about the Wabush deal, CLF had a deal before the vote and now it seems to be gone.
Does anyone realize that no one is developing new mines. Furthermore it takes 5 to 10 years to bring a mine on line. We are headed for a shortage of iron ore in the future as all of these existing mines start to slow down as reserves are used up and there will be a huge lag on bringing new mines on line.
Inventories and free cash flow will pay for this buy back, no need to get creditor's endorsement! Please review their income statements.
Have you looked at the balance sheet? $600 million in inventories, over $300 million in cash and generating positive cash flow with low iron ore pieces… you are a total idiot.
Other than announce a stock buyback, CLF has not done a single thing to take on the shorts. I really thought Casablanca knew the real problem before they took control, now I am not so sure. Drapkin was in the media several times before the vote, nothing since then.