GREY:LSTMF - Post by User
Comment by
Mastermind_9999on Oct 01, 2014 12:47am
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Post# 22985495
RE:Share Ownership/Buybacks verses Debt Reduction
RE:Share Ownership/Buybacks verses Debt ReductionWhen2buy, thanks for the feedback. I have an issue with your quote
"With the possibility of higher interest rates going forward, I fully expect LTS priority to remain on debt reduction and sustainable CapEx levels to Cashflow"
Based on how they have been budgeting capex in recent guidance, let's say 2015 will be appx 500mm, then add current interest costs and the dividend as reductions to operating cashflow - they are not going to have much cash left to pay down debt unless they sell more assets (which I would be fine with).
Following this strategy will take forever to get debt to a more resonable level.