GREY:FTPLF - Post by User
Post by
algroveon Mar 21, 2014 9:44pm
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Post# 22354811
LSQ can be converted to produce premium DP
LSQ can be converted to produce premium DPOne of the interesting points made by the Munich report is that the commodity DP market and the premium DP market (they mentioned a couple of uses such as cigarette filters) are totally separate. More importantly the latter does not have any Chinese duties.
Probably the cost to convert to produce premium DP will be higher than to a commodity DP producer. However, the LSQ mill we are told has newer (more efficient?) machinery than Thurso. So one alternative for FTP is to joint venture LSQ to produce premium DP. I don't know the economics, but could be highly profitable.
Chad keeps mentioning "other possibilities" for LSQ. Maybe he is working on something along these lines. Just conjecture.