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PSH, PENRICE SODA HOLDINGS LIMITED
nipper
post Posted: Jan 12 2012, 01:17 PM
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never heard of this before, as an earnings warning!!
QUOTE
Penrice Soda (ASX:PSH) has had to use road freight instead of its daily rail service on the Gawler rail line, South Australia, to transport limestone from its Angaston mine to its Adelaide chemicals plant.

The government temporarily closed the Gawler rail line from September 2011 to March 2012. The company has incurred increased road transport and other charges and chemical production losses to date of $2.5 million.

Road freighting damages the limestone, causing it to burn inefficiently in the chemical production process. Recent measures implemented by the company to control the impact of damaged limestone on chemical production have been successful and planned production rates resumed.

The estimated total cost to Penrice from the rail closure is forecast to remain at approximately $4 million in line with previous guidance. Penrice has been in extensive discussions with the government seeking compensation and support with regard to the financial impacts of this project, but to date these discussions have not been fruitful.

Penrice has agreed with its lenders for an increase of $5 million to the loan facilities, which will essentially be used to fund the considerable and unexpected costs arising from the temporary closure of the Gawler rail line. The company is confident of a better operating performance in the second half, underpinned by a number of operational improvements.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

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mulgoaman
post Posted: Jul 24 2009, 09:18 AM
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In this morning's Australian there is a fairly lengthy article re next Mondays meeting and the background thereto. To have a read go to www.theaustralaian.news.com.au/business then link to the "what the brokers say" and scroll down to Bryan Frith "Heard above Board - Penrice".

MM

 
mulgoaman
post Posted: Jul 14 2009, 09:15 AM
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From this morning's Australian, their columnist and stock analyst Criterion has this to say about PSH.

"There's nothing like a dissident shareholder campaign to galvanise a shy board into a flurry of self-promotion and even some Ashes
style sledging.
"The soda-ash producer yesterday followed up last week's upbeat profit remarks with a critique of London City Equities (LCE) which
has called an EGM to remove two directos in favour of two of its own.
"Criterion won't dissect the warring parties' claims, as it's as productive as adjudicating a divorce spat. LCE is peeved by Penrice's
earnings record since listing in 2005 and its high gearing, while the incumbents maintain Penrice's Way Forward program is, well,
going forward.
"The issue for Penrice's holders is whether LCE's nominees - Peter Murray and Glenn Turner - are more qualified than the proposed
axees, including chairchap John Heard.
"LCE, pretty much Murray's one-man band, has been phoning retail shareholders to garner support 'It looks
like it's neck and neck
between the parties,' he says, noting the value of their holdings has halved since the float.
"LCE and associates speak for 9.6 per cent of Penrice's capital. As most of the retail investors won't vote, instos accounting for
17 per cent of the capital will decide who goes and who stays.
"Murray says he's "depressed' by Penrice's response, which says Murray and Turner are 'not exceptional in terms of their experience
and expertise and do not appear to add to the skills and expertise' of the board.
"Penrice director Andrew Fletcher says the 'silly and costly' EGM (cost: $100,000) has taught the board to be more active with its
investor communications - even if it doesn't have much to say. "It's clear that sensationalism in the first instance does grab
attention' he says of LCE.
"Criterion had Penrice as a 'buy' at 90c in late May, on the grounds that a bit of gentlemanly curry doesn't harm. Now, we
suspect, harsh words will disturb the normally genteel ambience of the Adelaide Convention Centre on Monday week.
"Our suspicion is the board putsch will fail - they normally do. The moot point is whether the scrutiny becomes a force for good or
a distraction. On reflection, we'll put Penrice on HOLD until the gunpowder settles."


MM

 
GarryW
post Posted: May 31 2009, 08:21 AM
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In Reply To: mulgoaman's post @ May 30 2009, 06:25 PM

Mulgoaman
your comprhensive response is appreciated, i have had PSH on my watchlist for some time but looks like i have missed the lows





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"Go ye therefore into yon wilderness, and seek out that Golden rock, upon which all nations are built"
 
mulgoaman
post Posted: May 30 2009, 06:25 PM
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In Reply To: GarryW's post @ May 29 2009, 09:10 AM

GarryW,

From the half-yearly report to shareholders (Dec. '08) Penrice were showing an "underlying net profit after tax" of $2.3million which was an unchanged figure to the half-year Dec. '07. But they then made their provision for an unrealised loss on their hedging contracts of $4.7 million which converted the $2.3m. into a book loss of $2.4m.

This adjustment (mark to market) is to take into account any change in values of assets which are still retained by a company but which have incurred a paper loss. This would cover say an investment or property owing company holding investments and properties with a reduced valuation or a bank/finance company re-evaluating the amounts they consider recoverable on loans they have made.

So, if the worth of the shares, properties or loans happen to recover in a following accounting period then this will be shown in the company accounts, or if in the case of half-yearly accounts the adjustment will be cancelled out in the full year accounts.

If Penrice's hedging adjustment that was taken up in December is now no longer applicable and their guidance given with the half- yearly of "the outlook for Penrice for the second half is positive with improved earnings expected ....... improved sales volumes and incresased prices in chemicals, coupled with expanded volumes in quarry and minerals, should drive higher earnings thus improving net profit in the second-half" materialises then one would think there would be a good recovery in the share price.

Let's hope so anyway.

MM


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GarryW
post Posted: May 29 2009, 09:10 AM
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In Reply To: mulgoaman's post @ May 29 2009, 08:47 AM

Mulgoamann
Dose this mean that they will be crediting back foreseen realised hedge losses form the last accounts to next lot of accounts? Surely this will spike the the price



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"Go ye therefore into yon wilderness, and seek out that Golden rock, upon which all nations are built"
 


mulgoaman
post Posted: May 29 2009, 08:47 AM
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From this morning's Criterion column in The Australian:

"Controversy has erupted in the usually low-key and esoteric sodium chemical sector, which makes products such as baking powder used in Nanna's passionfruit sponge.
"The Adelaide-based Penrice has been hit by a request from the listed but little-known London City Equities, which wants to put two of its own chaps on Penrices's six-man board.
"LCE which speaks for 9.6 per cent of Penrice's capital, has enough votes to requisition an EGM. The fund is cocerned about Penrice's performance and says its nominees will help strengthen the board.
"Given LCE invested $5 million in Penrice at $1.25 a pop only last October, that's a rapid souring of relations. We couldn't contact LCE - which is pretty much a one-man show - so don't know what its grievances are.
"According to Penrice chief Guy Roberts, LCE was offered one seat, but Penrice thought a 10 per cent investor holding one-third of the board seats was too much of a stretch.
"Penrice reported a December half-year loss of $2.4 million, dragged down by a $4.7 million mark-to-market hedging adjustment. Roberts says there's otherwise strong demand for the company's products of soda ash (used in glass making), bicarb of soda (food and medicines) and limestone quarry products.
"Roberts says full-year earnings should be on a par or better than last year's $7 million, with - get this - a likely write-back of the unrealised hedging losses. No wonder the Americans are looking to get rid of mark-to-market accounting.
"Roberts says Penrice is still heavily investing in plant to overcome 'serial neglect by the previous owners', a reference to the private equiteers who listed the outfit in 2005.
"In the near term, he promises to give shareholders 'a more fulsome explanation of what the situation is'.
"Criterion rates Penrice as a BUY. As the olnly local manufacturer of its ilk, Penrice enjoys a 75 per cent market share, high barriers to enry and resilient Chinese demand.
"As for LCE's presence, it doesn't do any harm to have an active holder giving curry, as long as it doesn't get too disruptive and ungentlemanly."

MM

 
mme
post Posted: Mar 6 2009, 02:09 PM
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In Reply To: Ian's post @ Mar 6 2009, 01:51 PM

obviously Mr FLETCHER, one of the directors agrees with my thoughts as well (and of course yours). biggrin.gif biggrin.gif

 
Ian
post Posted: Mar 6 2009, 01:51 PM
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In Reply To: mme's post @ Mar 6 2009, 10:34 AM

mme,
Your guess is completely correct. The sp drop has happened on very small volume.
Mind you, PSH is not usually a heavily traded stock anyway so that needs to be taken into account, but none the less, its peanut volume that has driven it down. Any stock that slashes or cancels it divi for this reporting period can expect this sort or response. Fear and panic still rule.
As usual its a case of DYOR and listen to what it tells you. It tells me this is a severely depressed stock for no severe reason. So I am happily topping up and in the process nicely averaging down, though this is not my reason for topping up.
But I could be wrong so I repeat DYOR.
cheers
Ian

 
mme
post Posted: Mar 6 2009, 10:34 AM
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In Reply To: Ian's post @ Mar 6 2009, 09:49 AM

Yep Ian, like looking through those who have please explains just to see whether there is justification in a share price appreciating or depreciating. Looked at PSH and it astounds me at this level!! Don't know whether you have access to the volume levels that have caused it to slide from just over a dollar to current levels but it's quite possible it was on very small volumes given that there is under 60 million shares on offer! Possibly the debt issue is an issue to certain share holders or maybe Windimurra falling down who knows? biggrin.gif
Penrice Soda Products announces today that effective 1 January 2009, or as current contract
terms permit, it will increase the list prices for all packaged sodium bicarbonate by a minimum
of $125 per metric tonne (Australian Dollars).
This increase applies to all grades of sodium bicarbonate supplied from Penrice Soda
Products plant at Osborne, South Australia.
Prices FOB
Osborne, South Australia
New List Prices (AUD)
Effective 1 January 2009
Coarse Granular (Food Grade) $900
Medium Granular (Food Grade) $805
Premium Powder (Food Grade) $820
General Purpose $580
Warehouse / Terminal Locations
Adjustments to include packaged increase as
applicable plus freight and warehouse/terminal costs
Penrice Soda Products’ fuel surcharge and freight policies for sodium bicarbonate remain in
full effect.
“This higher sodium bicarbonate price is necessary to allow continued investment in
production reliability and output, as well as offsetting increases in raw material and energy
costs for our sodium bicarbonate range,” said Andrew Kuhndt, General Manager, Chemical
Sales.
Penrice is pleased to announce that it has completed and commissioned the expansion of its
sodium bicarbonate plant from 75,000mt to 100,000mt per annum. The expansion has utilised
the latest in European technology to further ensure that we satisfy the demands of our existing
and future customers..
Please contact your Penrice Soda Products representative should you have any questions
regarding this announcement.
Penrice Soda Products is a subsidiary of Penrice Soda Holdings (ASX: PSH), a Chemical and
Quarry Company supplying agricultural, industrial and consumer markets in over 27 countries
for over 70 years. The company employs over 300 people in South Australia and operates its
business in three segments – Soda Ash, Sodium Bicarbonate and Quarry & Minerals.

 
 


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