https://www.marketscreener.com/MERID...933/consensus/
Analysts fair value of $4.28 before this latest announcement by Rio Tinto. I think its clear the risk profile has changed and MEL will cop the most "treatment" if Rio Tinto pull the plug as it will take many years to divert the power north. Time will tell. $5 looks full value to me in this current landscape of heightened risk and uncertainty.
k14 - Keep posting mate, I'm liking the effort you make to share your point of view. I agree its unlikely that Rio will pull the pin but what is clear is that they want a better deal which will cost someone a lot of annual earnings, probably MEL. Rio seem very unhappy about transmission pricing and I don't think Transpower's review of their pricing model is helpful enough. Despite Labour's massive surplus I don't think they are of a mind to be helpful either.
Normally I would say site make good costs would make a favourable resolution more likely but if they're up for ~ $60 capex to overhaul one of the pot lines, then that's also a factor that makes the outcome less certain.
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