Sherritt International Corp T.S

I smell an announcement comming

[Nickbull]

I am surprised by the early report date. They usually report 5-6 weeks after quarter end. I suspect ther will be an announcement about another Dutch auction or significant payment of debt. I think it is too soon for a share buyback e specially with the low volumes. 

I would really like this dog to have its day!

any thoughts?

GLTA
cheers

[CommonCents123]

Tell me about it! Share buy-back is very doubtful in my opinion, but who knows? Debt reduction would be great.  Gotta raise cash to stay alive through the thin times potentially coming. GLTA for sure...

[FrozenInOntario]

They reported second quarter on July 27 last year, so I would not read too much into this report date.  They are not allowed to do a share back per the debt covenants. However, there will be a mandatory redemption of the 2026 this fall depending of the excess cash available as of April 30.   Wonder how much, the lowest the better so they could do a sizable Dutch auction. Lets see

[CommonCents123]

good to know about that share buy-back thx!

[rkhosla]

Thoughts: don't be too too hopeful....  it might not be for another quarter or two.....

[Albatross]

The obvious is further debt pay down.. some day they will throw a bone out our way. I think most are in agreement that share buyback would e the most effective way to give back to shareholders at current stock price.

[SilenceDogood1]

Just to play devil's advocate - why would you buy back debt at these prices?  I think given the poor commodity prices over the last quarter and today you would be a bit careful with your cash.  Once the two cash interest payment stipulation in the junior indenture has been met (January 31, 2024) as described by Contrarian you can start buying back stock from the restricted payment

[FrozenInOntario]

50% of excess cash flow have to be assigned to redeem their 2026 until it hits 150 million.    So 71 million need to be bought back.   This would be done at par.   So much better to buy it on the market at a discount if you can. And typically, after a close call with bankruptcy, paying down the debt might become an obsession.    Not to bad for shareholders

[rkhosla]

Agree - exactly.  There seems to be no immediate rush.  Circle the wagons for a bit.  Retrench.  Create a cushion.