Wow! This is the most significant GNS announcement I've ever...

Wow! This is the most significant GNS announcement I've ever seen!!

Pulp mill come hell or high water.

And the sale of the softwood saw milling assets (e.g. Auspine - ex FEA at Bell Bay and Tarpena) to help raise the equity - certainly didn't see that coming.

I am now certain, as per the rumours flying around, that GNS will start work on the mill very soon. My money is on Monday July 4th.

They have now made it amply clear that they will start building it, with or without a partner. It's a go-for-broke thing. If the asset sales are delayed, they can slow down the pace of work. A partner could come on board at any time, even well after the mill construction has started.

I also get a sense that this announcement has also been pitched at some of the potential JV partners GNS has been talking to. The ones who are now trying to screw them down on the price for their participation in the JV. A sort of "here's our strategy - get in quick at a price closer to what we're asking or you might get pipped at the post by another party who may come in before you, even when the project is well advanced".

From what is announced in this release, I also get a sense that negotiation on some of these asset sales may be well advanced.

KK, I was also struck by the contradiction of the earlier comment about the Japan earthquake and tsunami.

I also have trouble understanding how the EBIT guidance in the half year result announcement can still be expected given all the gloom on Japan and AUD. The only cost cutting GNS does is to not pay bills on time.

KK, GNS isn't broke; it's cash flow they are struggling with. Real debt is only around $350m (see recent GNSPA thread for reason its not $630 m) and asset base is $1.5 billion.

Any way, I've now changed my sentiment to a LT Buy.