The company had 19 mill in the kitty 3 weeks ago. In full production it cost 17mill to go 3 months. Time is something they haven't got right now. That mill simply has to be switched on. If the dam cost a few mill to repair it can be coped with, but no running mill and its curtains. Of course there would be a class action against GHD for losses during downtime etc. but how long will that take to get? Years?
If they go belly up my portfolio will sink. I stupidly put too much weight in these guys looking for a short term buck.
As for the dam, I've been speaking to our bulk earthworks contractor about possible reasons and possible fixes and plain fact is that there most likely isn't a quick fix. If its failed it needs rebuild. Isolation of failed section and rebuild. This would take months.
RED Price at posting:
62.0¢ Sentiment: None Disclosure: Held