Big Nick

S&P Gives Teck Cominco Lowest Investment-Grade Rating

If you take a look at DL's presentation for sept 08, the estimated pro forma debt at the onset of H2 08 was 11.4 BLN. The expected cash flows and hedging / coal contract effects were supposed to reduce that position to around 7 BLN by end of 2009. Almost immediately after this presentation came out, the prices crashed to near margin levels. The currency hedging program actually represents a large loss as well, and cancels out much of the gain on the cu hedging program. the expected cash flows of 1+ BLN plus per quarter are not being realized due to these factors as well as coal volumes not being fulfilled. The earnings / balance sheet release will tell all in 3 weeks, but the debt is likely still around 7-9 BLN, and won't be much less than that come the new coal year, when debt servicing ability will count most.




On Jan 26 02:42 PM User 135840 wrote:

> I am only finding 4.88 billion in total debt, 7.2 bil assets--were
> are they getting the 14 billion in debt ?