what a pile of schist, page-6

Pichmac,

Allways look on the bright side of life...

It is tempting to think things are not getting worse but I suggest that they probably are.

While PSH seems to be losing money at a consistent rate the mounting deficit of money going in to money coming out is a spiralling problem. At some point some point it becomes impossible to pull out of that spiral.

The deficit in cash flow turns up as a mounting debt balance and probably a minimal maintenance program. That balance will have to be returned to an acceptable gearing level before the company can start investing in catching up these lost years of heavy maintenance.

So first the company has to go to positive cash flow, then it has to reduce debt, then it has to catch up maintenance before it returns to dividends.

That catch up gets more difficult with time because the cost of mining good limestone gets more difficult as the mine gets deeper and the cheaper material is mined preferrentially each year.

So at some point the spiral is a death spiral. In my opinion that point was some time ago and this company will not pay another dividend.

I think it will struggle to get banks or fresh bunnies to put more money in.

Bacci