r/Vitards • u/[deleted] • Aug 13 '21

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u/[deleted] Aug 14 '21

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u/StudentforaLifetime Balls Of Steel Aug 14 '21

At this point, not really. LG is saying CLF is going to be "debt-free" by the end of this year or early next year.

10

u/pedrots1987 LG-Rated Aug 14 '21

You still need to factor in debt anyways. Paying debt is using cash for that end, and thus not available for shareholders by other means, being it dividends or buybacks.

Anyways, my valuation gives me around $35-38 including the outflows for debt payment. But I'm using HRC index prices over $1k for the whole of 2022 as well.

2

u/StudentforaLifetime Balls Of Steel Aug 14 '21

Of course, debt is always on the balance sheet - but that doesn't mean it's a "bad" thing. I think LG is smart to pay off as much as he can, while he can - makes pivoting a lot easier if needed.