Q: Hello, I was wondering on your thoughts on today's response by Methanex on the 13D filing by M&G.
Do you think this company is moving in the right direction?
What time frame do you think this stocks need to be held for full value to be seen by shareholders?
What do you think M&G will do next?
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The response talked about the investment they want to do in CHILI as well as their plans on share buyback.
March 27 (Reuters) - Methanex Corp:
* Methanex Corp - commented on filing of revised schedule 13D by largest shareholder, M&G Investment Management Limited Of London, U.K.
* Methanex Corp - "We are optimistic that we will be able to secure additional gas to support an investment in restart of our Chile IV plant"
* Methanex Corp - "expect to be in a position to make a decision by mid-2017 to spend approximately $50 million over 12 months"
* Methanex Corp - "We would expect to spend around an additional $50 million approximately in mid-2018 to refurbish Chile I plant"
* Methanex Corp - "However, given our limited near-term cash requirements, we expect to generate significant free cash flow even at methanol prices that are lower than what we are realising in Q1 2017 and plan to allocate the free cash to share repurchases. Assuming we are able to average a realized price of around $400/tonne, in what is proving to be a very volatile methanol market, we estimate that we could generate sufficient cash to complete the NCIB within a period of approximately four months from the start date of March 13, 2017. After completing the current NCIB on the NASDAQ, it would be our intention to extend the NCIB on the Toronto Stock Exchange which would allow us to use excess cash to purchase up to an additional roughly 1.7 million shares."
Do you think this company is moving in the right direction?
What time frame do you think this stocks need to be held for full value to be seen by shareholders?
What do you think M&G will do next?
----------------------------------
The response talked about the investment they want to do in CHILI as well as their plans on share buyback.
March 27 (Reuters) - Methanex Corp:
* Methanex Corp - commented on filing of revised schedule 13D by largest shareholder, M&G Investment Management Limited Of London, U.K.
* Methanex Corp - "We are optimistic that we will be able to secure additional gas to support an investment in restart of our Chile IV plant"
* Methanex Corp - "expect to be in a position to make a decision by mid-2017 to spend approximately $50 million over 12 months"
* Methanex Corp - "We would expect to spend around an additional $50 million approximately in mid-2018 to refurbish Chile I plant"
* Methanex Corp - "However, given our limited near-term cash requirements, we expect to generate significant free cash flow even at methanol prices that are lower than what we are realising in Q1 2017 and plan to allocate the free cash to share repurchases. Assuming we are able to average a realized price of around $400/tonne, in what is proving to be a very volatile methanol market, we estimate that we could generate sufficient cash to complete the NCIB within a period of approximately four months from the start date of March 13, 2017. After completing the current NCIB on the NASDAQ, it would be our intention to extend the NCIB on the Toronto Stock Exchange which would allow us to use excess cash to purchase up to an additional roughly 1.7 million shares."
