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
Last time they tried this blackmail he folded like a wet newspaper
Tiwai point is the worlds most inefficient aluminium plant. Closing it is pretty certain this time around. Might have to encourage oil exploration in the deep south to take up a bit of slack.....yeah right.
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
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
Welcome to the forum and thank you.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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!).
Bookmarks