Last time they tried this blackmail he folded like a wet newspaper
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Good to see some common sense from a well respected institution https://www.harbourasset.co.nz/resea...smelting-away/
International investors looking for a good deal regarding CEN SP. Currently well below last GS TP $8.40 (AUG)
CEN or MCY possible inclusion into Sept MCSI index replacing FBU ...........??
"Contact is currently presenting to international investors in Singapore, Tokyo, Frankfurt, Zurich, London, Boston and New York. This presentation has been re-issued with minor changes to pages 22 and 41 to provide clarity around the calculation definitions and added the source references to information presented."
For anyone interested in hearing some information from the horses mouth, Meridian held an investor call yesterday. You can listen to it here https://www.meridianenergy.co.nz/investors
Hope never to check either of them myself, but he showed all the balls of a gelding when he folded to Rio's "Bluff"
if you think the smelter wont close , good opportunity? rates are not going higher anytime soon
Just listened to the investor presentation....Well worthwhile if you have the time.
I was impressed by Neal Barclay.
As an aside, but nevertheless interesting, everyone asking questions was male.
Thanks, long time lurker!
Cliff notes of the call:
- Meridian not going to "bend over" and take a hit for the rest of the market (those were the CEO's words not mine).
- Sounds like Meridian do pretty extensive modelling to determine the financial position of the smelter and they believe it is cash flow positive at the current Alu prices.
- Big lump of CAPEX ($63M) required to continue operation of one of their pot lines. Meridian seem quite skeptical at the quantum of CAPEX required and to a lesser extent the timing.
- Around $110M of spend by Transpower required on lower south island grid improvements to allow the power to get out of Southland (this impacts both Manapouri and the Clutha stations). Then an additional $150M required to upgrade the HVDC link. Timing would be ~3 summers for lower south island upgrades and 5 years for HVDC upgrades. During this time the effect on all south island generators would be quite heavy with the stations further south effected the most.
My take is this is just posturing by Rio Tinto to get a better deal. They are not going to shut down a factory that makes money. Time will tell (lets see how well this post ages!).