Asf, I think PSH is in a difficult situation. The debt will spiral due to the compounding of interest but I can't see the alternative. The problem is fundamental.
Raising equity would be neigh on impossible. There is no good story to sell. Cash flow negative, no foreseeable dividend, aging plant, increasing costs and a Carbon Tax coming. The Carbon Tax was meant to hit "Big Polluters", PSH is energy intensive and right in the crosshairs.
The easiest thing to do would be to sell the quarry as they did the saltfields. This would buy time as it would give a cash injection but it would then have to buy limestone at a price which made the quarry saleable.
The R&D effort is good but too little too late. Perhaps they could sell off the IP to buy some more time.
The end has been foreseeable for some time. I made the analogy to the inevitible sinking of the Titanic. Fortnuately there has been time for those who needed their money to get out while it slowly sinks. As on the Titanic the crew seem to be doing a good job.
The closure of Penrice will reduce Australia's carbon footprint as the tax was designed to do. We can then use imported Soda Ash.
bacci
PSH Price at posting:
10.0¢ Sentiment: Sell Disclosure: Not Held
