Good luck or bad luck at 16h53 ????

[kokkie]

Who were trigger happy ??

[hexadecimal]

I saw that too. Was that a fault, fool or strategy?

[kwagga]

If Billiton is expected to pay standard electricity rates for their aluminium smelters, they will surely close them down to cut costs. If they do that, Hulamin is toast. This is a real risk.

[Pepi]

That's the way i see it Kwagga, but i think it will be a long and complicated process.

[#5]

so why wouldn't they sell them rather? What makes you think Hulamin wouldn't buy a a smelter?

[kwagga]

They can't afford too. The last time I checked they didn't have a few loose billion rand to pour into a loss making smelter.

[#7]

R4.5bn in fixed assets, R1.5bn in stock - they generate R130m a year pbt and they have modest debt. If the deal is right, and they can get a smelter at which to buy raw product at a discount - well that is what vertical integration is all about, isn't it?

[kwagga]

http://www.bdlive.co.za/business/mining/2013/03/12/transnet-targets-bhps-aluminium-smelters We can't compete with the Chinese, no matter who runs those Richardsbay smelters.

[kokkie]

They are already importing alu block from China to supply SAB with alu cans. Turnover is all that is needed. Production costs mainly in Capital expenses.