Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Oilbell is a kid, don't abuse him. I mean that sincerely, he is hyper, but he is hardly a crafty fox misguiding people .
There is a shortage, and demand is strong, in Tangshan yesterday a cargo of Indian pellets made $161 USD a tonne. That is eyewatering stuff. and a one off. That's a $100 premium. Apparently it was a desperation buy, but hey, I only wish it was Ferrexpo's ship. As for the price drop here. Can be anything, some people in large firms just dump or buy Iron ore, and dot really think of Ferrexpo as being a different product.
For me to predict the share price two years from now would really be hazarding an estimate, but clearly as debt falls here investors who are debt adverse will take positions in the company, or if a restructure of finances takes place this will impact on sentiment. clearly the company is enjoying an excellent year and while base iron ore has fallen in price over the H2 and H3 period, the Atlantic premium paid on pellets remains in the mid $40s. This cash generation in 2017 will be needed to protect the company in 2018 as debt maturities arise. You asked about the S P in two years, I would suggest you change that date target from 2 years to 18 months when the Full Year results for 2018 emerge in early 2019 .
From 6 MOU's , from its worth $150m , from ' the deal is nearly done '. To this ! Did anyone here really do their homework on this one . It's a mess, I'm out and the CEO did you all a favour before resigning , a last day RNS warming you all . In my opinion this will be suspended within no time - I'd sell as fast as I can . DYOR .
A buyout would need SH agreement - even at 8p that might not carry, too many LTH. Not to mention management !
I think there is an opportunity here, it's a question of timing . I'm holding off buying until the next RNs
I'm keeping a watching eye on Richland, This mine is worth more than the company. and as such is a classic buyout target, either external or internal. BO has done well to get things this far, given the production quality, no move from me at this stage.
Hi Matt, I think it was a mixed school report, but broadly in line with expectations. Ebitda was higher than I expected, and production was down as expected. But there are interesting aspects. 1, how can production be only marginally ahead in H2 after the line maintenance in H!, clearly there is more of this coming. 2, The PRE PAYING of $50m of debt has skewered the accounts, leaving FXPO with $145m in cash instead of $195m. Why ? Why ? I suspect a new finance deal has been arranged and part of the deal was this must be settled first, probably with a deal on the interest. As per usual they keep the pellet premium price a secret and only give the core value of 63fe Platts. I expect another RNS with the loan deal to follow.
this was expected, as you say the upcoming drilling programme counts for all. I bet Oil India must be wondering about their investment here. I'd rather invest $100m in Tony O'Reillys gamble in PVR.
Back to the same bloody disco every weekend and never get a girl, that's Petroneft. Frustrating.
Ukraine’s Ferrexpo raising $350m pre-export loan BY: REUTERS LONDON – Ukrainian iron-ore producer Ferrexpo is raising a four-year pre-export syndicated loan of up to $350-million, banking sources said on Monday. The deal is the first time the company has tapped the syndicated loan market since discharging financial restructuring advisers in April 2016. Ferrexpo returned to a more stable financial footing last summer after an increase in commodity prices and easing hostilities with Russia. The loan is being arranged by BNP Paribas, which is acting as co-ordinating mandated lead arranger. The deal has been launched to a wider syndication and will close on July 31. It includes a provision for an accordion feature to increase the deal to up to $500-million depending on bank appetite for the facility. However the new financing comes against a backdrop of increased tension between Russia and Ukraine in recent weeks. Russian-backed rebels in the Eastern part of Ukraine announced the creation of a new state called Malorossiya, or ‘Little Russia’ earlier this month. Ferrexpo declined to comment. There have been almost no Ukranian loans since Russia annexed the Crimea in March 2014, with the exception of loans for agribusiness Kernel, which last borrowed $300-million in a pre-export financing in 2016. “Kernel is the only Ukrainian company that has recently tapped the international syndicated loan market - it will be interesting to see what appetite is like,” the banker said. Ferrexpo appointed PTJ Partners to negotiate with creditors at the end of 2015, and PwC was mandated by two separate groups of pre-export finance lenders to come up with a restructuring plan. At that time, the company had two outstanding amortising pre-export loans – including a $420-million 2011 facility that was due to mature in July 2016 that was repaid and a $350-million 2013 facility that matures in August 2018 that remains outstanding. Ferrexpo made the final scheduled repayment on the $420-million facility in August 2016. That pre-export financing was originally agreed in 2011 with a syndicate of banks comprising ING Bank, UniCredit Bank, Societe Generale, ABN Amro, Citigroup, Credit Suisse, ICBC, WestLB and JP Morgan and paid 225bp over Libor. Moody's Investors Service upgraded Ferrexpo's rating to Caa2 in April, citing the company's improved liquidity profile and the expectation of strong cash flow generation in 2017/18, which will help the company to manage its near-term debt maturities.
The loan book has been sent to market and all applicants have to take up their allocation by July 29th. It will be interesting to see what appetite there is for this baring in mind this is Ukraine. I think it is cracking little deal for the bankers who will get around 10% for their money. $350m is basically a refinancing of the entire Eurobonds loan, without the complication of actually doing a refinance which is complicated. The fact that they feel confident enough to as for €350m shows the lead banker is super confident of filling the book....and the best part is Ferrexpo is demanding an option to borrow an additional $150m if it sees fit. This part is crafty. As a banker I wouldn't;t like it but it shows who is calling the shots here....and it's Ferrexpo. just wait till the RNS come out.
the money of $350m, will be ring-fenced to pay the $172m 2018, and $172m 2019, and create a new eurobond loan for four years at $87m a year for four years ending H2 in 2021. Makes a lot of sense for all involved as a two year maturity on $350m was too severe of a payback schedule. It will free up cash for expansion