From the Daily Commercial News:
" The Liberals' budget bill, which includes $130 billion for infrastructure over the next decade, passed at Queen's Park on July 24.
Provincial budget passes at Queen's Park
The final vote on the budget was 56 to 37.
Among its infrastructure commitments, there will be new dedicated funds to make nearly $29 billion available over the next 10 years to build a seamless, province-wide transportation network by investing in highways, public transit, roads and bridges. Of this investment, $15 billion will go to the Greater Toronto and Hamilton Area and the rest of Ontario will receive $14 billion for its projects. This includes a $1 billion commitment for strategic transportation infrastructure in the Ring of Fire."
So CLF will sell Wabush and their Ring of Fire Assets will triple in value. News next week will spark a short squeeze. Would not like to be holding short positions going into Monday.
So an idled mine pays no royalties! Sounds like a good reason to step up and buy the mine. Plus without have to pay royalties, MFC's cost of production will be lower than CLF's.
Thanks for the update, good to see people are monitoring the progress and reporting it on these boards. Real value and a good break from people pushing the vote to CAS or CLF.
As of year end 2013 MFC reported.
$332 million in cash
$190 million in long term debt
$398 million in retained earnings
They are in very good shape to buy this mine, considering CLF paid $88 million for 75% of the mine back in 2009, then subtract impairment charges CLF took in 2012 and the depletion charges. I expect CLF will have income on the sale for anything north of $75 million. The biggest thing will be getting out from paying continuing unemployment charges in Canada and other maintenance charges. All of this is speculation based on the numbers I know, hope CLF reveals the details.
But MFC can afford $200 million without taking on debt and are in position to issue shares to add needed assets.
Roy jumped into the sell a little too early and I think his "investors" would be a little upset. I just don't understand his move, that Wabush deal was hanging out there and was the reason I was monitoring the news.
Good move on buying today, hard to bite the buy when the stock is up over 4%. Day traders would love take the profit you have so far.
Short squeeze, need to see 13 million shares or more in a day. Short covering 30K to 40K per minute over at least a 4 minute span.
They just released the CBC article that I referenced earlier. There was another article where CLF's was specifically asked about it and they had "no comment".
With it hitting the mainstream media caused people to jump into CLF.
I got pulled over for a suspected DUI, the cop had me get out and said, "I am going to give you a Yahoo mental incapacity test". I passed and here I am.
Plus I am talking about the cash from the sale of the mine, not cash generated from continuing operations.
The spending on BL would not stop the short attack, it will just add to it. The name of the game right now is stop the shorts.
Good luck with it. So far today I have not seen the volume hold an average 30K shares a minute which has been the threshold in the past for short covering. There just doesn't seem to be people willing to initiate a sell order. Volume did pick up after 2 PM, maybe after 3 we will see it hit the 30K average.
If a deal is done on Wabush this weekend, then we should see a real short squeeze on Monday.