I bought in at the beginning...…..But have managed to average down to 19 cents. Like Ratkin, I may be in for more.
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So they are going to keep windfarm going & not sell assets
What is the right thing to do?
I always thought wind turbines are stuffed after 20 years?
When will cost of maintenance be too high?
These turbines have been going 14 years
These turbines I thought are pretty inefficient?
When would it be best to ditch them & use the resource consent for fewer,newer,taller more efficient ones?
Gear boxes etc are replaced regularly, towers should be good for a long time. They no longer have to run them when it is high wear for little return. IMHO most of them should be almost as good at 20 as they were at 5. more into debt repayment and buybacks seems a better option to me than taxable dividends.
Agreed. I would have been happy to forego the dividend and have debt paid down quicker. But companies often aren't that keen. I know there are accounting reasons but I'm old school - get rid of debt asap.
Especially when that debt is expensive. I do not know what it is exactly but from memory it is well above market rates. If the debt was at 3% or thereabouts I would not care about paying it down. But its not, its closer to 8 from what I can gather. So better to get rid of that.
I reackon NWF just needs to run the assets down, take all the cash it can and then scrap the turbines as they will be worthless once they do not work anymore.
At some stage these turbines would need to be replaced?
See 2018 maintenance schedule
Vs Are the new ones more efficient?
Then when is the optimum time to replace?
Trading halt this morning!? :scared:
https://www.nzx.com/announcements/338257
surely won't be NZ Windfarms making the transaction, has to be a takeover offer right? Mercury?