Latest / Best of Business / Shane Solly: Harbour Asset Management expert on Synlait selling their Pokeno plant for $307 million

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Shane Solly: Harbour Asset Management expert on Synlait selling their Pokeno plant for $307 million · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talks be follow
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• 0:16
  Speaker 2: Jane Soli Harbor Asset Management is with us.
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  Speaker 3: Hello, Shane Tona quere how are you very well?
• 0:23
  Speaker 2: Thank you? Busy day for the dairy sector announcements today.
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  Speaker 2: So you had an announcement from Fontira.
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  Speaker 3: Yeah, So Fontira is obviously sold Mainland group business to
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  Speaker 3: La Talas, one of the big global groups, and it
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  Speaker 3: announced a supply arrangement with them today. Basically a ten
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  Speaker 3: year raw milk supply deal allow us both parties after
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  Speaker 3: seven years to chop out with a thirty six months
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  Speaker 3: notice keeping. Here is a good price for farm and
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  Speaker 3: still based price of farm gate price plus some undisclosed
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  Speaker 3: premiums link to volume and collection and so forth. And
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  Speaker 3: really importantly their Fontier is expecting the same sort of
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  Speaker 3: volumes they have been delivering into Mainland. So about tree
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  Speaker 3: and fifty million leaders, similar levels of activity between the
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  Speaker 3: two groups and terms of Finnish goods as well, all
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  Speaker 3: up at a little bit of a support for the
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  Speaker 3: Fonterierra ship race up a half percent to seven ninety
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  Speaker 3: five today. That's the Pinetier shield.
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  Speaker 2: Of fund Sorry okay, and what about Sinnay.
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  Speaker 3: Yeah, so Sinlay has obviously been under pressure with you
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  Speaker 3: rather than high levels a debt and a bit of
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  Speaker 3: an operating profit problem over the last year. They came
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  Speaker 3: out with a result today. It was better than expected.
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  Speaker 3: But really the keyping that drove the sheep price up
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  Speaker 3: was up fifteen percent today to eighty one cents was
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  Speaker 3: a sale of its North Iron assets to Abbott for
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  Speaker 3: just ever three and a million. That that is a
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  Speaker 3: really helpful combining that with a bit of better cash
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  Speaker 3: flow and it actually takes care of most of Cinela
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  Speaker 3: is dead at the moment. They haven't provided guidance. Management
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  Speaker 3: didn't provide guidance, but they did talk about previous manufaction
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  Speaker 3: problems they pretty much resolved and they're actually seeing a
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  Speaker 3: strong customer demand. So a much better day for Sinlay.
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  Speaker 1: Now.
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  Speaker 2: We've been speaking to Nicola Willis just before about the
• 1:56
  Speaker 2: energy market report out this week. What's the market expecting?
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  Speaker 3: Yeah, so market sectually relev keyfully optimistic is probably the
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  Speaker 3: best oputant. So we've got the government due to announce
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  Speaker 3: at surgul intervention charges hopefully on Wednesday, and it's the
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  Speaker 3: end of the month. That's what they've said, and based
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  Speaker 3: on recent minister's comments, the market's expecting changes to be
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  Speaker 3: pretty much common sense adjustments rather than major interventions, and
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  Speaker 3: that days these are announcements on Wednesday won't really materially
• 2:25
  Speaker 3: impact their current share prices or their company valuations. What
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  Speaker 3: we are watching for the heather is measures that address
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  Speaker 3: things like gas shortages, including potential for gas imports, some
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  Speaker 3: improved transparency on hedging and assistance for retail market, some
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  Speaker 3: discussion about hydro storage, about contingent hydro storage, and anything
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  Speaker 3: that really streamlines this resource consenting process. That while the
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  Speaker 3: market's not expecting big shocks, there's a lot of focus
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  Speaker 3: on you know, is it going to be just that?
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  Speaker 3: Is it going to be a little bit of common sence?
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  Speaker 2: Yeah, brilliant so has Shane has always good to talk
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  Speaker 2: to you. Thanks mate, Shane Soley, Thanks Harboraccit Management.
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