CLF needs someone like Musk, was hoping Casablanca would provide a dynamic person, guess that didn't work out.
These bonds are unsecured corporate bonds and the interest rates are tied to ratings based on the ability for CLF to generate cash to make the agreed payments.
Provide us with the terms of these bonds, I can't find them. Most corporate bonds are secured by the company and in the case of bankruptcy, the bonds are paid first, preferred next and common last. The security is within this structure and not tied to a specific asset.
I was thinking the same thing, maybe there is something good about BL. CLF talks about selling everything but US ore, BL and the Ring of Fire.
CLF has kept VALE out of the US market by providing high quality iron ore pellets at a low price to where VALE cannot pay shipping and sell at a fair profit.
VALE started to increase shipments to China. In order for RIO and BHP to protect their interest, they simply increased production to push the spot price down to take away VALE's profit. Basically RIO and BHP is doing the same thing CLF has done to keep VALE at bay by pushing the iron ore price down.
At some point VALE will back off and iron ore production will decrease. VALE will come to the realization that they must buy out local companies to achieve presence in the markets they want to serve.
will cause the Chinese steel companies to lock up Australian ore supplies because of the high cost of transportation. CLF stands a good chance to sell Asia Pacific at a fair price.
That is some heavy mulch, 3 cubic feet is a third of a cubic yard and will easily fit in the trunk of a car. On the other side, it won't take long to spread. I know you meant 3 cubic yards and I made this case for iron ore back when it was $120 and compared it to gravel. Iron ore is now a local product that cannot be shipped long distances. The end result will be consolidation in the industry as companies cannot enter a new market without owning some type of presence. Much like cement where Cemex bought out cement companies in their main markets.
If they can get $1 billion for the Asia Pacific operation, everything will be down hill from there. What people her fail to realize is that to develop a mine, you need 5 to 10 years without producing a single dime in revenue. So it is in the best interest of companies that want to expand is to buy existing mines at a discount or a fair price. The Chinese steel companies realize this and will be after assets like CLF has. Clf can unload $1.5 billion from Asia Pacific, Wabush and inventory reduction alone without even touching BL. If CLF can cut their interest expense in half, then they can compete with all the low cost producers.
You are a complete idiot, cannot read a simple income statement. I am really tired of your mood swings and I believe these swings are by design to get responses.
Just pull up last quarter's income statement and subtract about $3 a ton from US profits, reflects about a $20 decrease in spot iron ore prices.
The biggest question is what is their base line cost of the assets they are selling which is their original cost minus depreciation, depletion, amortization and any impairment charges taken. So if they paid $1.5 billion for a mine and wrote off $500 million, they will have a base line of $1 billion. Selling it for more than $1 billion, they will have to report income, less they will take a loss.
Where CLF needs to return to is a debt of $1.5 billion and maintain the US operations which is where they were prior to expanding into Canada. I think they can get there by selling Wabush and Asia-Pacific, plus reducing their inventory levels. If they sell their coal assets, they can keep the chromite and over time take on a JV partner. Under this scenario they will be better off than before they expanded into Canada. And BL is the wild card where they can sell it now or later.
In any case, we need to see a deal now. I don't know what is happening with Wabush, but that asset needs to go at any cost.
"In the week ending August 30, 2014, domestic raw steel production was 1,913,000 net tons while the capability utilization rate was 79.5 percent. Production was 1,858,000 net tons in the week ending August 30, 2013, while the capability utilization then was 77.6 percent. The current week production represents a 3.0 percent increase from the same period in the previous year. Production for the week ending August 30, 2014 is down 1.0 percent from the previous week ending August 23, 2014 when production was 1,932,000 net tons and the rate of capability utilization was 80.3 percent.
Adjusted year-to-date production through August 30, 2014 was 64,108 net tons, at a capability utilization rate of 77.2 percent. That is up 0.7 percent from the 63,675 net tons during the same period last year, when the capability utilization rate was 76.9 percent."
Based on steel growth in the US, CLF needs to concentrate on being the number one iron ore provider in the US now and when iron ore prices improve, diversify in other materials, not expand their iron ore market.
I get BHP's strategy, no serious buyers for their assets at this time, so they are going to spin them off with an IPO.
I would like to know what CLF is doing with the huge inventory on hand. Selling off half of it will net them more cash now than selling an asset like Wabush.
OK, finally got it out from you, you support Gonclaves and his direction… you need to stop the Skittle like post where you bounce around from side to side. Same applies to imagine.