Ann: Genex signs Binding ESSA with EnergyAustralia for Hydro, page-15

Gee, if y'all don't already hate me, you will after this.

While details are sketchy, the deal announced today turns GNX into a passive asset owner who collects an annual rent while EA operates Kidston to suit its wider generating asset base and enjoys the revenues "(including P&L responsibility)".

This is not a PPA, this is a takeover in all but name. Yes, Kidston gets built, but all and any gains accrue to EA. Holders have been snookered.

GNX's other solar assets are hocked to the gills, which means it will struggle to 'grow around' this passive investment. If electricity prices move modestly lower on reduced demand, as market consensus suggests, this heavy gearing will cause GNX great difficulties.

GNX is up today, but only on retail volumes. If this was the miracle many seem to think it is, the smart money would be in there soaking up stock. They are not.

jezyh, I would lighten exposure lnto this rally. I change my sentiment from none to sell.

I note with interest that the Kidston wind component is being prioritised ahead of the solar, in accord with my prejudices.

Ash