BacciI have bought shares for our SMSF ranging from 6.7c-8.5c...

Bacci

I have bought shares for our SMSF ranging from 6.7c-8.5c and I consider these to be cheap whilst speculative. Had I bought at around the float price I would be distraught as I,m sure many who did are. It just seems to me that there is hope now where there was none before and I,ll be hoping to make a capital gain at the prices I purchased, I am not anticipating dividends!

Your points:

Most contracts with the big glass manufacturers are 2-3 years I believe

Solvay ash is much more expensive to produce than to mine Trona so the cost of international ash is generally set by ANSAC as the lower cost producer which is distributed world wide by SASS, shipping costs are generally quite low so landed costs FOB in Australia will be likely well below PSH could have supplied or that any interested Solvay ash producer could match.

The Kilns exist and will be easily managed at little cost as the throughput constraints which applied previously are removed.

The CO2 cost is embraced in the kilns operating costs but obviously their will be gas compression costs to be borne

With regards to employee numbers it seems to me that by reducing 70% of the operation that numbers might have reduced more, however I do concede that there is a disproportionate requirement of hands on labour necessary and that the limestone quarry still needs manning (this should also be a profitable operation if construction picks up) .

The bigger issue seems the Ridley salt arrangement which as you state is take or pay. I,m sure they have some idea how this will resolve, I will feel better when it is.

There is also the coal seam gas water treatment issue which they claim could be "game changer". I have no opinion on this other than to say these things rarely progress to operational stage, still I hope they are right in their assumptions

Am I enthusiastic?, well based on the price I,ve paid I think as I previously stated there is a good chance the shares will appreciate over time, if they do we,ll do OK, if the company turns its toes up we will lose a small percentage of our investments, that's how I view it, an acceptable risk.
You obviously have an alternative view to mine. Time will tell which if either of us is correct.

As I stated before it is up to individuals to decide what are appropriate investments for them. Mine is obviously an alternate opinion to most of those posted in these pages and elsewhere on PSH, as I said time will tell