Re: Algoma, lenders and Noront....True Value.
in response to
by
posted on
Sep 28, 2017 05:01PM
NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)
Tinman,
According to the link below property values in Sault ste Marie have gone up yearly by 2.8% since 2012..
https://www.mpac.ca/Media/PressReleases/SaultSteMarieResidentialPropertyValuesOnAverageHaveIncreased28PerCentPerYearSince2012
BUT....
I think the decrease has to do with the port of Algoma and th co-gen plant being conveniently sold to Essar's Parent Company PRIOR to the Chapter 11 filing...and it was sold for peanuts.
http://www.saultstar.com/2016/10/20/port-of-algoma-says-business-as-usual
Because the port of Algoma and co-gen plant are "currently" not part of the newly named ..Algoma..I believe for this reason the taxes for property are lower.
But..let's not forget..
"A monitor appointed to oversee the restructuring efforts of Essar Steel Algoma has filed a motion of oppression against the Port of Algoma and the Co-generation facility.
The motion, not yet proved in court, alleges that the Essar Group exercised "de facto" control and conduct over the Sault Ste. Marie steelmaker resulting in transactions that benefit the parent company and has served as a detriment to the steelmaker.
Those "unfair" transactions include the sale of the Port of Algoma and the Co-Generation facility.
It alleges the sale of the port was "undervalued" and that sale should be voided by the court.
The motion also states that agreements regarding the co-generation facility are unfair, citing shared services agreements and energy supply agreements and seeks damages that would see the co-generation facility supply Algoma with energy for its operations or pay Algoma for damages resulting from the "oppression."
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in regards to the chromite smelter.....Last month it was reported:
“There is some complexity around the CCAA process in the Sault and we’d like to really understand that and see some outcomes before committing or dismissing that site,” said Coutts.
Unfortunately, the Port of Algoma, a subsidiary of Essar Global Holdings, is tied to the complicated and lengthy restructuring proceedings which may be resolved this fall.
But with the ownership situation at Essar Steel still unresolved, Noront is holding off on making an announcement.
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If I was to make stainless steel at Algoma, and looked to see if there was an achilles heel that could affect my bottom line....The Port of Algoma would be on the list.
Since the Port of Algoma and the Co-gen plant is no longer part of the Algoma package up for restructuring or sale...it is an achilles heel.
If you bought Algoma...the port owners over at Essar group control the cargo handling agreement.
They could apply an increase to the agreement at an amount you weren't happy with.
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But, we wait to see what happens with the Motion filed regarding the undervalued sale of this asset to Essar Global.
Essar is sure having some "bad luck" these days..
Essar Steel, a subsidiary of Essar Global...just had....
a vital slurry pipeline cut...sabatoged..
"Damage to the slurry pipeline couldn't have come at a worse time for Essar Steel as lenders, led by the State Bank of IndiaBSE 0.94 %, have initiated corporate insolvency proceedings against the firm that owes them Rs 45,655 crore in debt. "
Essar Steel's lenders will be holding their first meeting on August 31 to decide on a resolution plan to deal with the company's debt, sources tell CNBC-TV18.
Sources further add that lenders are keen to rope in a new investor for Essar Steel and change its promoter