Thanks ErnieandbertHey E&B,
Have been perusing this board since I put some posters on ignore. So much cluttering, similar to ceo.ca but for another reason.
Want to thank you on your posts, it makes it worthwhile to spend time fighting with stockhouse interface.
Believe you were quite spot on a June post when you mentioned they would keep cash at Moa’s level so they would not trigger the cash sweep and have to buy back bonds at par. This did not have to do it in the 3rd quarter.
When is the cash sweep next calculation ? I would suspect that whenever the have to buy back debt under the cash sweep, the days of buying back debt under par will be over as they will also show cash coming in from that cobalt/receivable swap. Can you elaborate on the cash sweep mechanism, is there a cap on it in term of amount ? A time might come when these bonds trade over par.
Thinking about it, 4th quarter results should be eye opener. Just hope that they do not publish them before they have to pay those DSU/RSU. When the cash from the receivable/cobalt sway starts to show on the balance sheet, action should be more than interesting to follow.
BTW, do you believe they will refinance their debt ? They could do so at less onerous term and with cash building on the balance sheet, they should have some options.
GLTA,