Goodbye Gunns, It's Been Fun

What is the lesson of Gunns going broke? Well surely it must be that if you don't run your core business well all the projects in the world won't save you. In addition, I contend that the dollar was always going to rise with the mining boom and as it did any business case was going to be eroded beyond viability. 

As for Government. The willingness by both Gunns and the Government of the day to distort due process to the point of borderline corruption was a disgrace. Folks have been talking about the Tasmanian Government presenting a sovereign risk to potential investors. This is absolutely to true but perhaps not just in the sense the TCCI thinks.

IMHO, a modern government of any moderate persuasion should try to set the market conditions and then leave it alone. A government the intervenes on one project on behalf of one corporate entity is distorting the broader market. 

My heart goes out to all those loosing their jobs during this time. Also, it goes out to those self funded retirees and others who hold guns shares. I don't believe that the board ever made it clear at any AGM that the pulp mill was an all or nothing bet. 

Mack