Sherritt turnaround and bond pricesSince June 2022, cobalt price has been cut in half and nickel is trading lower. If I understand well some nay sayers on this thread, nickel prices are going down the drain with the coming recession and the Cuban factor and its American connection is getting worse and worse. Sherritt is going down. Hey, just look at the stock price.
Bond investors, those risk averse investors, hyper concerned about the return of capital, should also price those risks and drive the prices of the bonds down. Add to the equation the risk free rate increase with the bank of Canada more than doubling it to 4.75 (and more to come) and for sure, the bonds have to be going down south.
And yet, bond prices have been trending up since June of last year, the 2026 from 74-78 to 86-87 and the 2029 from 45-50 to 72-74
So the bond market is telling us, poor suffering shareholders, that the financial situation is getting better. Much better. No idea when the share price will rerate but so far, Binedell plan and more importantly results, has convinced the most difficult investors. But rerate it will and it could be epic with a market cap of 200 million.
GLTA