Post by
rkhosla on Jan 18, 2022 10:08am
Cap Ex
I have been saying for a while that after years of extreme austerity, they have accumulated quite a backlog of neglected maintenence and cap ex and that it will take some time to repay this maintenance defecit. The $80 million figure is a touch suprising (especially as it excludes the new efficiency initiatives they have yet to disclose or cost out). However, in the end it is the sign of our return to financial health that they can finally address the neglected plant and ensure we continue to run without breakdown... $80 million is equivalent to $2/lb of Ni production and fingers crossed we are already seeing the price rise that much over last year. In terms of those other efficiency initiatives they speak vaguely about them and say they are "in the years ahead". They are anticipating a long boom here. I would think though that the slurry plant and other 'debottle-necking' initiatives they keep mentioning are included in the $80 mil
Comment by
Snacktime on Jan 18, 2022 2:08pm
80 million $'s are they out of their @&$? minds? Do what NEEDS to be done, pay off some debt, buy back some shares, pay a small dividend if possible. I worked in maintenance for Sherritt and never in my life seen an that kind of money spent. This company could be 1 hurricane away from obliteration.
Comment by
Albatross on Jan 18, 2022 2:20pm
Yeah I saw that number as well and thought oh great here we go again. Hopefully this nickel price has legs and gets me to my tap out price. God please have mercy
Comment by
Nickbull on Jan 18, 2022 4:06pm
HAHA im sure that's exactly what the bond holders want. Pay out money to share holders. Laughable. Let's see if they can get the 8% increase in production they have guided. I have my doubts, there will be reasons as there are every year as to why they missed. They need more OE and reorganization. cheers