Seems like the passengers have voted to rearrange the deck chairs on the Titanic. By voting down the renumeration report twice in a row shareholders have caused a spill of the board and an EGM will be held within 90 days.
I think this is very hard on the directors. They and the staff have down a stirling job keeping the old plant going this long. If I was a director I wouldn't seek re election, the task is impossible.
Like the Titanic after it its hull was breached PSH is doomed.
In summary; Market cap of about $5m, debt of about $100m. Cash flow negative, it borrows to keep going. Plant maintenance is expensive and falling behind, very energy intensive. Cost cutting has taken all the fat away over decades. Old technology that is being replaced by natural ash around the world.
The carbon tax will make it worse. It is exactly the sought of energy intensive industry the Carbon Tax is meant to close down. We can then reduce our carbon footprint by using imported glass, bottles, soda ash and bicarb. The closure of Penrice will be a success to the Greens.
The Penrice workers need to start searching for green jobs around Port Adelaide. There must be demand for Barristas and hairdressers. I doubt Penrice will make it to Christmas in its current form.
bacci
PSH Price at posting:
8.4¢ Sentiment: Sell Disclosure: Not Held
