TSX:TECK.A - Post by User
Comment by
deismanon Feb 22, 2014 2:26am
495 Views
Post# 22237711
RE: InterOil eyed by Teck
RE: InterOil eyed by Teck
Personally I really can't see Teck spreading themselves so thin; at least I hope they wouldn't. Interoil
operates in the red and will be there for quite some time.
"The Company believes that it has sufficient funds for the Midstream Refinery and Downstream operations; however,existing cash
balances and ongoing cash generated from these operations will not be sufficient to facilitate further necessary development of the Elk
and Antelope fields, appraisal of Triceratops field and condensate stripping and liquefaction facilities. Therefore, the Company
must extend or secure sufficient funding through renewed or additional borrowings, equity raising and or
asset sales to enable sufficient cash to be available to further its development plans." Sure Teck had ~2.8B cash at year
end but an Interoil AQ would take twice that plus more. Presently they are commiting ~$2.94B over four
years (2014-2017) to the Fort Hills oil sands project. I'm sure if they have LNG
asperations they could JV closer to home and for a lot less $$$$$. Capex this year alone is ~2.6B balanced
nicely between $710M copper, $725M coal, $195M zinc, $955M Energy and $20M corporate. Either stay the
course and see what the oil sands brings you or pick up a copper prospect like Augusta's Rosemont property.
IMHO