GENRE: Email letter
AUTHOR: Daniel Z
DATE SENT: Sun, Jan 20, 2013 at 8:11 AM
TITLE: ProMinent projections in light of recent policy changes?
STATUS: Awaiting response
UPDATES: Any updates should be posted in the comments section below
According to your website, you supply, among other things, “Dry Chemical Feeders & Systems for Fluoride.” According to Flexicon, upon whom you rely for Flexicon bulk bag unloaders, your company “has supplied more than 60 fluoridation systems over the past 25 years.” Flexicon also notes that, in Australia, “In the last few years… the pace of fluoridation has quickened as various states have introduced fluoridation programs, backed by state government subsidies.”
I am seeking clarification – in light of very recent developments that seem to indicate numerous Councils in Queensland may cease their fluoridation programs – of ProMinent’s financial and/or share price projections. How will the removal of water fluoridation programs effect ProMinent’s profit margin? Will this have a flow-on effect to Flexicon and other similar suppliers of fluoride dosing facilitation equipment?
Furthermore, would you say, in general, that the water fluoridation program in Australia is very important to the financial stability of numerous industries, which rely on the supply and injection of fluoridation chemicals to public water systems? How will an overall reduction in the supply of fluorosilicic acid and sodium fluorosilicate, in particular, filter down the supply chain in financial terms?
And finally, are subsidies still being offered by Australian state governments? If not, how will this effect the financial viability of ProMinent?
I thank you for your time.