Originally posted by WangChung
The concern would obviously be what happens with ZENs contract with the CGY should it go bust, or put Dalgarana into care and maintenance.
Sure, it would be a take or pay contract, but pay with what?
Meanwhile, ZEN would be stuck with the capital costs of the plant.
All theoretical at the moment, but market seems to be positioning itself for a bad news announcement from GCY.
I'm not ultra familiar with GCY, but is the market potentially overdoing the anticipation of bad news? I mean yes GCY missed production forecasts, but still, look at the chart below. Whilst GCY aren't producing as much as what the market would like, and two of the senior staff instantly left, it doesn't seem like they're at risk of going bankrupt. They have good reserves, sufficient cash to cover interest bearing debt, and they're clearly heading in the right direction e.g.: improving on their numbers/production.
Oversold don't you guys think?
