GREY:AXXDF - Post by User
Post by
Saulion Mar 27, 2017 8:08pm
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Post# 26038031
Re: Waiting Time
Re: Waiting Time
As far as I know there would be a number of obligations attached to Wabush Mines.
Cliff's walked away from a unfunded employee pension plan and there's also the environmental cleanup costs.
A new operator could be legally bound to those obligations and with Wabush's uneconomic ore grades the aquistition is unrealistic to most miners.
Cliff's or Rio Tinto could step up and buy both Alderon and Wabush , however Alderon's Net Present Value is $1.3 billion with 100% of reserves presold.
Kami's true economic valuation is in the multi-billions and controlling interests would probably vote against selling the project at a discount, especially in light of the new US Admistration Policies.
Presently Alderon appears to be the only operator that can potentially create hundreds of jobs and keep the Wabush operation running profitably.
Very Interesting times...
Sauli