Why would you short Tassals *now*?, page-946

Yea i did see the new appointment, i havent heard of him before, but he does look like a good appointment, and the market liked it, which is positive for them.

I heard an interview with him where he was talking about supplying the domestic market, where as previously it was all about export.

I dont see how any appointment can change the fundamental problem with their business, that they will have a higher cost structure due to their remoteness (higher transport and wages). We are on the main highway with support from a handy sized town nearby (proserpine), and likely a good supply of transient workers from Airlie Beach when things open up again.

They still need $100m funding before they can become operational, and it was reported on the SFG forum that Nissui (who they have purchasing agreement with and is largest shareholder) didnt participate in the latest capital raise. Even if they get the next $100m, from earlier estimates they wont be EBITDA positive, so it doesnt really help them with cashflow, so what the point in stage1 ?

I just dont see how it their business can be viable, and i think that's why they are having trouble attracting support from big investment vehicles like banks/brokers.

If SFG tries to compete with us on price on the domestic market, they are at a disadvantage, but if they stick to their original plan and focus on exports to Asia, then they have to compete with low costs suppliers from there. I just think its a pipe dream that went too far, someone should have pulled them up by now, but their persistence got them this far, and their failure could be a slow one.

Another thing, their long term plan is upto 180kt a year, 15k tonnes a month, i dont know how many flights it would take to transport that much, but it seems like a lot. So do they plan on transporting them down to Sydney first where their is more international freight, or are they going to have their own planes...

I dont see it.