TSX:TECK.A - Post by User
Comment by
paljoeyon Feb 18, 2009 8:22am
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Post# 15785744
RE: RE: Tecks Debt: What really matters
RE: RE: Tecks Debt: What really mattersThe downturn is turning out to be steeper than anyone ever imagined which means that it wont be a short recession.
This means that Teck wont see any profitable cash flows for perhaps the next 5 years.
It cannot sustain those losses and a default on its debt becomes very probable.
Anyway,why invest in these debt-laden seniors in the wrong sector.
Gold is the place to be, and choose only those golds that are risk-free due to their cash.
Orvana ( T.ORV..$0.75 ) has $120 million in cash , no debt and producing 70,000 oz of gold at less than a cash cost of $250 per oz.
Or, GMN at $0.85 ,with $123 million in cash ( $1.63 per share ) and riding out the storm while paying a dividend.