Look this is all about science….good science.
We will be making a model that will show good science.
We will have independent industry experts on hand who are reasonable factual when it comes to science.
Make no mistake; Bass Strait (B.S.) will be made to flush in this model.
Our experts will lay out a map with arrows that will point the way for B.S. to flush. Now if it remains a sticking point and fails to do so at first, then our lawyers will SLAPP B.S. until it will flush.
We are ourselves experts with B.S. as we have been diving deep into B.S. for many years.
Nothing that matters lives in B.S. as our experts will attest…..well perhaps a few microbie thingies, but that’s why we are sticking a big pipe right into B.S.
Our effluent will mix with B.S. and just make B.S. bigger that’s all.

Roll on the show……

Had Gunns not announced that they were proceeding with further modelling the message to shareholders would have been very clear. It would have meant that they had abandoned all hope of operating a pulp mill and that the estimated $100M spent so far would have to be listed as a loss. Together with a shrinking pulp market and a debt of $160M to be paid by the year’s end, not to mention a distinct lack of joint partners in the present - and there weren’t many offers when times were better either, things look less than rosy for this ‘proud Tasmanian company.’

This is where I am getting confused….

- Herzfeld’s independant report on marine outfall is finally, reluctantly released. Gunns declares it outdated and reports to the ASX that they can comply with marine limits.

So Gunns must have obtained scientific proof that makes Herzfelds studies redundant, - am I right here?

- Gunns now advertises for trained professionals, to ‘conduct scientific research in marine modelling’.
It announces to the ASX that it is about to START the research that will take 18 months to complete!

How can Gunns declare Herzfelds report a dodo, when they have nothing to replace/dispute it with?

What gives?

Dave, it rolls, but stinks like crap.

Gunns income stream must be running to a trickle, as a result cashflow must be a serious problem. MIS investments will slow or stop, for to require the deduction you will be one of the favoured few with a taxable income,the woodchip market has collapsed and Fund Managers will soon sell out or risk all. Hence the share price,below 75cents.I suggest that below 60cents the Banks will call in the recievers it is an offence to trade whilst insolvent.

John(#4)the share price is not a test of solvency. Be patient and wait for the 6 monthly results for the period ended 31st Dec 2008, which should be released by the end of Feb 2009.

Understandably WIN TV and Southern Cross focussed their News Bulletins on the Victorian bushfires this evening but once local news stories began the cutback on Woodchip exports hardly rated a mention.

John, thankyou, but it is a very good indicator of company health as it is a market driven opinion of residual value.

Gunns are claiming that the closure of the Triabunna chip mill for 7 hours cost them $50 000. That’s a cost of $165 000 per full day.

Now they are closing both this and Burnie for two weeks. The cost is ($165 000 X 28) $4.62 Million.

They are also closing two mills permanently in WA and trying to sell one of the for $10 Million.

They failed to raise a loan of $15 million from the WA Government and they are now offering unfunded loan certificates for another $15 Million.

Given that their current debt situation is over $100 Million and their liabilities for buy-back of timber are another $170 Million, why is this company still operating?

Are they trading illgally?

I suggest that the timber workers start looking for alternative employment - possibly as firemen?

The biggest test for Gunns will be the result of the current unsecured notes offer. Three months ago when last time they have asked retail investors to cough up they got 1.6 Mil out of the 90 they have asked for. Those investors lost more than half of that money already.  I wonder what idiot would lend them a single cent this time around.

I still love Access Economics short right to the point assessment back in October last year: “Gunns looks like a goner” they said. With a bit of cynicism from the outside it does smell like they are in a spot of bother and while it might be wishful thinking that they are insolvent, things do seem to point in the right direction, and one can only but hope that Access were right on the money!

Tony #3, that’s what I’ve been wondering too. It really annoys me that Gunns can make these statements and get away with it. Why aren’t they challenged? Happens time and time again and you’re left wondering .... and wondering. Shares down to 70 cents now and hopefully that trend will continue.

I haven’t really checked myself, but is the price of sawlogs from FT also pinned to the international price of pulp? If it is, we are probably getting less than $6 per tonne, which doesn’t make the Florentine worth very much.

Could we ask the EPA to check for us.

What was that…..?

If Gunns really is up the financial creek, they could sell off some of their assets.

As nobody wants MIS any more, maybe they could get a good price for a site at Bell Bay with full planning permission to develop.

Looks like Gunn’s may have asked “Pitt and Sherry” company to do the hydro-dynamic modelling. I saw their trucks headed toward Georgetown at 10pm Thursday.