From memory, they've closed down one potline before. A sensible move when price/demand for one's product reduces.
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From memory, they've closed down one potline before. A sensible move when price/demand for one's product reduces.
It was only re-opened 15 months ago. Jacinda was there for the opening ceremony, wonder if she will be there for the closing ceremony.
https://www.stuff.co.nz/business/ind...s-tiwa-potline
Aluminium on a downtrend since 2018 from $2500 to a low today of $1530
Been pointed out to me that our $ has been too high for some years and Rio go quiet when $NZ is below 60c , like now.
Tiwai aside the gentailers are a few of the reliable divvy payers left. Could even these come under threat with the regulator/Govt forcing down power prices to help out people struggling to pay there bills especially with autumn /winter heading our way.?
Agreed. Nothing is safe in a depression. People are going to need to learn to live a simple life off whatever welfare they're entitled too and chew up as little capital as they can get away with.
https://www.stuff.co.nz/business/120...nz-in-lockdown
You'd think the free cash flows (of which the gentailers pay almost all of it out via dividends) of the entire sector would be hit... dividends already looking stretched for some gentailers, and probably now going to be under serious pressure to even maintain them at prior years levels... yet they are still priced (near) perfection in my view... MCY for example last year paid out $209m in dividends of its $237m free cash flow (over 89% of its free cash flow was paid out), and even after falling a firth since the heights of the mid 5's, is currently on a 3.7% yield... aka priced to pretty close to perfection... and if Free Cash Flow falls 10% this year, if MCY is to increase its dividend by a few percent, it will be paying out basically all its FCF (which surely is not prudent!). Time for the power sector to get a bit more realistically priced, eg go back to where it was around 2017.