GPASAS, Nice to hear from you. Its good to have someone to talk schist with.
I hope you are right but I think the future looks grim for Penrice. Heres why;
1)Their last figures were break even. Since then the AUD/USD has gone up about 5%. This will lead to imported ash price reducing the same amount and being below the Penrice production cost.
3)Whatever carbon tax and compensation mechanism comes in it is a matter of degree how much Penrice loses out of it.
4) The plant continues to deteriorate and I doubt there is much long term maintenance going into it.
5) The mine gets deeper, the rail link gets older, the cogen contract heads to expiry.
6) If PSH needs money for a rainy day like a major breakdown it has nowhere to turn. Bankcard maxed out, shareholders tapped out.
7)As the end nears there will need to be some focus on the liabilities of the Defined Benefit Super fund.
8)If somehow there was an operating profit, I don't know how, it will be soaked up for the foreseeable future in catching up with deferred maintenance.
I can't see this company paying a dividend again. So far my pessimism has been right as the price gently slides into the dirt.
Regards bacci
PSH Price at posting:
26.0¢ Sentiment: Sell Disclosure: Not Held
