All TSE holders are awaiting confirmation the new 5yr contract to manage the asylum seekers on Manus island and Nauru. Although many are from Syria they still have to be processed and clearly it takes ages. It appears the 12,000 extra refugees will be processed in Turkey ir similar before being settled in Oz and they won't go via Manus or Nauru although it may happen in the future.
Could the sudden additional 12,000 refugees mean locations in Oz to settle refugees from Manus become tighter hence delaying their departure? Quite likely imo. Its cheaper for Govt to house ayslum seekers on Manus than on mainland so i can't see numbers on Manus/Nauru reducing significantly anytime soon. Plus efforts to settle them in Cambodia and PNG appear to have new issues.
TSE is only company remaining in tender process and are conducting final negoiations with govt. Current contract (also awarded to TSE) expires 31 October so time is tight. No guarantees but am very confident TSE will renew for a further 5 yrs and SP will respond accordingly.
TSE Price at posting:
97.5¢ Sentiment: Buy Disclosure: Held
