Western Copper and Gold Corp T.WRN

Rio Capital Raise

[Riotintoe]

Interesting capital raise by Rio.  I'm  not implying anything with this post... Just of interest...  1.75 billion for "general corporate purposes."   A mix of 10 year and 30 year notes.... Redeemable at any time by the company...

https://www.riotinto.com/en/news/releases/2023/rio-tinto-finance-usa-plc-prices-us1,-d-,75-billion-of-fixed-rate-notes

[CopperAndGold14]

I'm curious what some of the financial types who participate here on this board might think of this bond sale. I have a narrow view of this type of transaction - it means one of two things (1) RIO believes interest rates will continue to rise, or at least won't drop much, so better raise capital at these rates, and/or (2) RIO believes they can generate a better return than the coupon

[Riotintoe]

CandG14, I can't speak to the reasons for the bond issue.   I do know RIO ended 2022 with a net debt of 4.2 billion as indicated in their latest annual report  "$4.2 billion of net debt1 at year end, compared with net cash1 of $1.6 billion at the start of the year, primarily reflected the free cash flow1 of $9.0 billion, offset by $11.7 billion of cash

[EvenSteven27]

JClarke, I respect your opinion. would you mind chiming in? out of my realm. 

[jclarke042]

Looks to be effectively a bridge loan. The cash flow information Riotintoe posted below is the right place to start looking. Per the cash flow statement, page 29 of Rio's annual report: Ending cash & equivalents: $6.8 billion USD. Dividend payout of $8b in earnings paid out this coming April - ex date 3/9. Loan is almost exactly the amount between upcoming payout and their YE cash

[Asdfghjk]

I believe Sooner has nailed the buyout price. Id be happier closer to 10 CAD but I just don't see it happening. Well here's to hoping we geta buyout before year's end. J want to buy another house as my ex has the last one I bought. Price I paid to krep my investments.

[Asdfghjk]

IF the 1.75 billion was for a buy out let's say it is. It would equal just over $11 a share CDN. Now in no way am I saying this is what will happen or will be the eventual buy out price but it is nice to dream a bit sometimes. I am sure Sooner wouldn't mind being wrong if it doubled the buyout per share he has set forth. Which I do believe is closer to reality. Now if we were fortunate

[jclarke042]

When I said this morning RIo issued a similar bond in 2021, I didn't bother checking the issuance date. October 29, 2021: Rio issues US$1.25B bonds, 30 year term. And then: November 9 - Invests $2m in some non-profit initiative for mining reclamation November 17 - Invests $87m to increase aluminum smelting capacity November 18 - Becomes sole owner of Diavik mine - buys out distressed, 40