Sherritt International Corp T.S

Thanks Ernieandbert

[FrozenInOntario]

Hey E&B,

Have been perusing this board since I put some posters on ignore.   So much cluttering, similar to ceo.ca but for another reason.
Want to thank you on your posts, it makes it worthwhile to spend time fighting with stockhouse interface.
Believe you were quite spot on a June post when you mentioned they would keep cash at Moa’s level so they would not trigger the cash sweep and have to buy back bonds at par.  This did not have to do it in the 3^rd quarter.
When is the cash sweep next calculation ?  I would suspect that whenever the have to buy back debt under the cash sweep, the days of buying back debt under par will be over as they will also show cash coming in from that cobalt/receivable swap.  Can you elaborate on the cash sweep mechanism, is there a cap on it in term of amount ?   A time might come when these bonds trade over par.
Thinking about it, 4^th quarter results should be eye opener.  Just hope that they do not publish them before they have to pay those DSU/RSU.   When the cash from the receivable/cobalt sway starts to show on the balance sheet, action should be more than interesting to follow.
BTW, do you believe they will refinance their debt ?   They could do so at less onerous term and with cash building on the balance sheet, they should have some options.  
GLTA,

[Ernieandbert]

1) thanks  2) the debt buyback (2x) and the cobalt swap were tranformational.  And yes building wc at moa was intentional and strategic  3) the excess cash flow sweep happens twice per year...Dec  for April and June for Oct. they need to meet the liquidity test amongst other tests for dec and April. No cap on what they are forced to buy should they meet all tests.  4

[FrozenInOntario]

Many thanks.   Do you believe they will be in excess cash flow for the July to December 2022 period ?  What i find interesting is that this will only be disclosed upond filing their annual financial statement.   I would hope that their financials be filed at the same moment they have their board meeting as disclosing excess cash flow is another positive sign in their turn

[Ernieandbert]

Depends if they upstream from moa.  Who knows?