Interesting, I am not familiar with this. What does, "transition period" and "transition capital structure" mean.. is this in existance for a defined period of time, or do they mean it in the ambiguous, "we are transitioning to green" so at some point this revenue will go away?
I updated my post and linked to the Teck news release. It looks like the royalty is in place until $7B is paid or 2029. But after that, EVR will have to deal with the preferred shares.
This is definitely an attempt to appease the ESG cult.
At least it means there will be no incremental capex from an sustainably profitable new met producer. So net net its positive for met supply and prices going forward.
Thanks. Very informative
Interesting, I am not familiar with this. What does, "transition period" and "transition capital structure" mean.. is this in existance for a defined period of time, or do they mean it in the ambiguous, "we are transitioning to green" so at some point this revenue will go away?
I updated my post and linked to the Teck news release. It looks like the royalty is in place until $7B is paid or 2029. But after that, EVR will have to deal with the preferred shares.
interesting, thanks
I had pretty much the same thoughts when I first read the details of the deal:
1) They still retain the FCF so what's the point? Is this an attempt to appease the ESG cult or am I missing anything?
2) Why would I want to own this?
3) I wonder how it goes
This is definitely an attempt to appease the ESG cult.
At least it means there will be no incremental capex from an sustainably profitable new met producer. So net net its positive for met supply and prices going forward.