RE: RE: RE: RE: RE: RE: Teck readies $2-billion asWe all wish, but no you are not wrong, actually its worse, it was more like 14 BLN for 48%, they already owned 52% with the direct and indirect interest.
So ya the deal represents a loss of 10 BLN, but considering they could've done what fording did and sell out their interest in the coal patch, that was worth 28 BLN, the whole EVCC show is now worth between 3 and 4 BLN (using 130 US coal and an 0.80 Cdn exchange) thats a 25 BLN LOSS of value! but heres the thing, commodity prices are not low, relatively speaking they are at expected levels or even much better. 1.80 copper, 0.55 zinc, 130 coal, and 8 dollar moly, these are all quite good metal prices historically speaking.
So, so sad, but true. Why do you think the market cap has gone from nearly 25 BLN to 3 or 4 BLN. It represents a LOSS, not a down market, or a swing, or panic selling, or being undervalued. well maybe that and the other overpriced acquisitions. The overpayment for AUR represents about a 2 bln dollar writedown, and well the foray into diamonds and galore, another 1 BLN or so.
the saddest thing of all, if that teck genius management is now gifting away the precious metals and gold credits and assets, for fractions of the true value, and eliminating the natural hedge that many of tecks top assets have or had enjoyed.
I estimate the losses realized on these transactions will add up to 1 BLN if gold stays at a grand, but several BLN if gold runs to 1200 or 1500 / oz. Most elite investors that I can think of are beefing up their positions in gold right now, not divesting of them at 70% of their value!
This stock is a joke and will struggle to maintain even double digit status for years to come.
Not to mention some other more historical management blunders:
like giving away one of the largest copper / gold deposits in the world called Pebble in alaska, to Northern Dynasty, back about 7 years, for peanuts, literally. the deposit has something like 400 BLN worth of metal in the ground at todays prices, and check out the history for yourself, it was literally gifted away. NDm worth 800 MLN today, but listed by PEter grandich and others as one of the most undervalued megascale deposits out there.
Voisey Bay transaction - gifted away, realized value under the inco merger about 15 to 20 times the price paid.
you will also find out that in the late 90s, teck passed an opportunity to acquire a lions share of what is now the Albian oil sands for a few hundred million, now worth tens of billions.
and if you really want to look into the history books, you will find out that under the old reigns of cominco, the predecessor of teck, that the entire company of agrium, was gifted away many decades ago, for pennies on the share compared to what it is today.
Teck could be a BHP Billition sized outfit, if it werent for the years of ill timed acquisitions and passed up deals.
Now what do we have, a 8 dollar share with 24 dollars debt attached to it, and half that debt due inside 6 months under the worst possible circumstances in capital and debt markets in 80 years !!!!
BOO TECK - you suck.