RE: RE: RE: BNN I have to agree that the debt is not as bad as it seems. I believe the company will not have an issue with it. The market is just hyper-sensitive to any debt that appears not manageable because of everything from YLO to WTG to BAJ over the past few months.
Remember ML has over 1 year's production worth of copper forward contracts (though spread over several years). They took a big loss paper on them last quarter which is part of the reason why their net income looked so bad. If copper tanks, a la 2008 crash, the company has two things going for it. First, it'll make their bottom line net income look good although operating income will look worse so who knows how the market will take that. But more importantly if they get into cash troubles, they can buy back their copper forward sales and take the net cash win associated with them and apply that to the debt. The only way ML goes under is if copper has a sustained meltdown in price much worse than 2008.
The issue with ML right now is how the general market perceives its debt. The issue is that the technicals look horrible and Kurd's guess of 20 cents doesn't look to off-base (I'm guessing around 30). I wouldn't post here if I wasn't interested in the stock, but i just think it has a severe risk of a greater fall. For those people who can stomach it, you can wait it out and it will recover. For those who can't, well APM is my pick .
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