CAN Group was always going to struggle without government help. Sheer economics of growing in a first world - super expensive labour, power, infrastructure, water etc not to mention the cost of the facility (and the land in that location was super cheap as its in the middle of nowhere). I'm not sure on the total amount CAN spent on it, but its very large and sooner or later interest rates going up an no debt reductions will begin to hurt. Having visited the facility a year ago, even from my non-technical eye - the writing was on the wall then unfortunately. A real shame as the Oz industry needs a good big producer for the domestic supply as Australia is at the moment the fastest growing market in the world due to the re-classification since July 1st last year. Surely will be over taken by Germany from April 1st this year though...
AC8 Price at posting:
4.0¢ Sentiment: Buy Disclosure: Held
