It is nice that you have a high opinion of the Chairman. I also think that the staff have done an excellent job and are to be commended for keeping this dog breathing so long.
I agree that plant renewal is necessary. The key difference between us is that I don't think that this is possible in a substantial fashion. It is important to understand the magnitude of that task and try to quantify it.
I understand the replacement cost of the plant would be 2 to 3 billion. It is very heavy engineering. Meaningful rejuvination would cost hundreds of millions. It is not practical for them to renew this when they are cash flow negative, fully geared with tapped out capital.
I expect it is surviving on breakdown maintenance with only the most critical overhauls being done.
I agree with you about Europe having too many public servants and others sucking on the public teat. I agree we will not see another Solvay plant in Australia (and very few if any elsewhere).
I think Natural Soda Ash will continue its advance. On this thread I have suggested 70c, then 60c,then 50 then 40 and now 30 seems to me to be a good selling opportunity.
If I had shares I would be a seller. I wouldn't buy at any price. Regards Bacci
PSH Price at posting:
39.0¢ Sentiment: Sell Disclosure: Not Held
