Asf, Penrice is the only manufacturer of Soda Ash in Australia but it is not a monopoly. It actively competes with importers. Ash is a comodity with a standard specification. Competition is on delivered price only.
Its customers are mainly the big glass manufacturers. They are international organisations who are skilled buyers. Therefore the price that Penrice that Penrice can get is limited by the alternative imported price.
Much of its product is sold outside of South Australia and is transported by Australian ships while imported product is imported by internationally competitive shipping. This reduces the local manufacture advantage.
As for tweaking the plant or productivity I expect it has been tweaked to within an inch of its life. Since ICI sold it off in the early 90's a succession of owners have been tweaking. They would have long sice worn off any gold plating left by ICI.
Selling the mine, as it did the saltfield, will buy it time as it fritters the proceeds away while buying limestone.
As I recently posted I don't expect to see it over 10c again. Probably another couple of months between 5 to 10c. Sooner or later the banks will stop pumping money down the hole.
In my opinion this is no turn around story. Any turning will just be as it spirals down the gurgler.
The carbon tax will probably pull the plug on it.
Bacci
PSH Price at posting:
8.0¢ Sentiment: Sell Disclosure: Not Held
