NWF - NZ Windfarms

[Voltaire]

Confused and disturbed. This is a shining example of inept corporate communication. They're attempting to have it every which way, both "positive" and "cautious", but it's hard to see paragraphs like the following inspiring any confidence in the board or the share price:

"While the Board is confident in the Company's ability to continue as a going
concern, there is uncertainty with respect to achieving the operational cash
flows predicted and the raising of additional funding prior to utilisation of
available cash resources. Accordingly, there is uncertainty as to whether the
Company can continue as a going concern and therefore whether it will be able
to pay its debts as and when they become due and payable."

Hold onto your hats while the market digests this lot.

Disc. hold both NWF and WTL

[Grimy]

"While the Board is confident in the Company's ability to continue as a going
concern, there is uncertainty with respect to achieving the operational cash
flows predicted and the raising of additional funding prior to utilisation of
available cash resources. Accordingly, there is uncertainty as to whether the
Company can continue as a going concern and therefore whether it will be able
to pay its debts as and when they become due and payable."[/I]

What the........?!

[Grimy]

"The consequence of not having finalised its funding strategy is that there
exists at the date of this report an uncertainty that the Company is in a
position to pay its debts as they fall due."

"As highlighted in the December 2008 Interim Report, the most significant
event for the Company during this reporting period occurred on 8 December
2008 when the Company announced that its wholly owned subsidiary, NZWL-TRH
Limited, had reached an agreement with NPBB Pty Limited to purchase NPBB's
50% interest in the Te Rere Hau Wind Farm Joint Venture for $20.1 million in
cash. The first tranche payment of $18 million was settled on 17 March 2009
and the balance of $2.1 million is due on 17 September 2009."

Umm. I think they knew they had this payment coming up for a while. Surely they should be a bit further down the track with funding options??

[Rif-Raf]

What a debacle this is turning out to be and auditors have tagged as not a going concern. The turbines aren't performing that well and haven't been certified and are probably going to have to be replaced. Lots of cost and delays to sort out and legal wrangles between WTL and NWF.
Grimy 's observations about never seeing the turbines turning sums it up

[trendy]

Windflow 2 blade torque box and only 500kW are a POS. 500kW is not of a commercial size for wind farms being built today. Huge under utilization of available wind energy per acre.

Without IEC or equivalent recognized accreditation sales will not occur to credible developers.

NZ Windfarms should cut their losses now and go with a proven vendor that also has local (PN) maintenance and support available i.e. Vestas

[Grimy]

Down in Palmy for a quick visit this weekend. As I was driving north via Cheltenham, the turbines were spinning (slowly, but spinning), a beautiful day (PN having far too many) with a gentle breeze.
Let's hope NWF and Wndflow sort themselves out. With Vector being a major shareholder I can't see NWF falling over, but for we small shareholders a bit more common sense and practicality wouldn't go amiss.

[BRICKS]

What looks like a gold mine ends up like lead weight NO div this year or next why BUY the share lucky to be 50 cents only the faithful and believers must be hanging on or something
that has been MISSED..

[Raven]

NTA/share is still at about $1.04. I don't normally use to estimate shares value so I would welcome comments by others. I expect there will be a significant depreciation on the turbines after WTL revelation that they won't have the high level certification. Anyone guessing by how much? Still some value in the turbines alone regardless of power output this year and I'm guessing it maybe more than $0.50/share. Comments?

[Voltaire]

NTA/share is still at about $1.04. I don't normally use to estimate shares value so I would welcome comments by others. I expect there will be a significant depreciation on the turbines after WTL revelation that they won't have the high level certification. Anyone guessing by how much? Still some value in the turbines alone regardless of power output this year and I'm guessing it maybe more than $0.50/share. Comments?

I think the turbine certification issue has been vastly overstated by NWF who appear to be desperately hunting around for someone (else) to blame. The reason I'd be hesitating to buy NWF is the track-record of the board, not the turbines.

Disc. Hold both NWF and WTL

[Raven]

Still waiting on the resource consent decision...... I emailed NWF yesterday and they got back to me quickly that they hadn't heard anything about it either and that they would publish it as soon as they heard. Surely the council pushing back the decision by a month was enough but they still can't deliver on the date they say they will. I'm not sure I'm surprised though. It is a council after all.