Sleep peacefully, zwu. Once built the mill won't go broke. Gunns' partner (most likely the majority owner of the plant) will be a large international forest industry player with the ability to easily manage their mill debt. Their debt to equity ratio, interest cover, and any other financial metric you care to look at, will all be in the comfort zone.
Given its current state, the same metrics for Gunns probably won't look so good. If the mill has a long drawn out commissioning period or production hits the market during a period of very low pulp prices (it's cyclic) and the partners need to inject more cash, GNS will be the one to struggle.
That, zwu, is how GNS's share in the mill will probably end up being cleaned up by its partner.
As long as it isn't over geared, the mill will always be successful. It's cost of production will put it just inside the bottom quartile of all mills. That's what being "world-scale" and "new/modern" gives you.
GNS Price at posting:
60.0¢ Sentiment: None Disclosure: Not Held
