Power shares

[whatsup]

way the power shares are falling , rio must be going to bail

That would be the kiss of death for any govt, IMHO they should negotiate hard but keep RIO in N Z ( if at all possible ) .

[bull....]

That would be the kiss of death for any govt, IMHO they should negotiate hard but keep RIO in N Z ( if at all possible ) .

direct subsidy to rio would be politically risky , transpower subsidy which they are looking at , vector has said they take them to court if they do that and at the end of the day rio fundamentals are getting worse with lower world demand for aluminium and falling prices. least they could drop power prices for everyone if rio closes plant be biggest stimulus for households

[ratkin]

direct subsidy to rio would be politically risky , transpower subsidy which they are looking at , vector has said they take them to court if they do that and at the end of the day rio fundamentals are getting worse with lower world demand for aluminium and falling prices. least they could drop power prices for everyone if rio closes plant be biggest stimulus for households

Yeah, and Electricity prices for the consumer likely to be in the PMs thoughts

[Tomtom]

Deflation does have some benefits in the short term. However all the major players will consequently shelve their projects and conserve cash. It won't just be be the plant workers out of the job. Deflation rapidly becomes unpalatable to most governments.

[blackcap]

way the power shares are falling , rio must be going to bail

NZ energy futures would indicate otherwise with prices holding up quite well.

https://www.asx.com.au/asx/markets/f...EA&type=FUTURE

[macduffy]

Yes, its looks like the word has got out to industry insiders and they're telling their mates to bail.

Either that or someone's jumping to conclusions or spreading rumours! Mind you, the gentailers are some of the easiest stocks to sell with the best liquidity. The rest of the market has since caught up!

PS Nothing to do with Power shares but I've just noticed that the latest posts, RYM and SKL, adjacent on the listing, are written respectively by Tomm and Jerry!

[Lewylewylewy]

gentailers... i always miss read that word.

That aside, do you think that economic damage increases the chance of rio quiting and therefore gentailers are priced too highly?

Also, they say that after a war, the leader always gets another go round. I think that this covid19 debacle will have the same effect. I'm not sure if Jacinda will care about Rio's departure. Might try to sell the consequent drop in electricity prices as a good thing she did.

Just an alternate perspective for you to enjoy.

[Food4Thought]

gentailers... i always miss read that word.

That aside, do you think that economic damage increases the chance of rio quiting and therefore gentailers are priced too highly?

Also, they say that after a war, the leader always gets another go round. I think that this covid19 debacle will have the same effect. I'm not sure if Jacinda will care about Rio's departure. Might try to sell the consequent drop in electricity prices as a good thing she did.

Just an alternate perspective for you to enjoy.

I like the perspective. Such a major use of electricity that plant uses. Best part of we Zealand for diving down there.

Try Preservation Inlet... Cod as long as your arm... solid 8 hour trip by boat... certainly not for the faint hearted

[fish]

direct subsidy to rio would be politically risky , transpower subsidy which they are looking at , vector has said they take them to court if they do that and at the end of the day rio fundamentals are getting worse with lower world demand for aluminium and falling prices. least they could drop power prices for everyone if rio closes plant be biggest stimulus for households

Rio are reviewing their options and could use the uncertainty of corvid-19 economic damage to postpone their final decision.
I do not know for sure but I guess they will have to close for 4 weeks and then maybe will re-open the pots they can run on cheaper contracted prices

[bull....]

Rio are reviewing their options and could use the uncertainty of corvid-19 economic damage to postpone their final decision.
I do not know for sure but I guess they will have to close for 4 weeks and then maybe will re-open the pots they can run on cheaper contracted prices

delay doesnt change much in way of fundamentals and im sure the power companies do deal to keep smelter open but it be at s/h expense , also demand for electricity will be well down this year now due to lock down and business failures to come. im for letting rio stand on there own feet not for subsidies if gentailers are so keen to throw millions at rio they should throw millions at consumers to if rio closes.