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Gold/Mining/Energy : Synex International Inc. (SXI.T) -- Ignore unavailable to you. Want to Upgrade?

To: Ally who wrote (18)	8/20/1998 12:05:00 AM
From: gsun	Read Replies (1) \| Respond to of 42

Ally: Regarding potential devaluation of Chinese currency, the power and heat purchase agreements include protection for devaluation to the US dollar. There is a risk that in massive devaluation, the customers of the Chinese utility would stop taking power due to the price increases caused by devaluation, but this has to be massive devaluation as the exchange rate is only one factor in the price of power changes. The risk of the Chinese utility defaulting on payments to the power plant exists, however as in North America and other countries, established utilities operating with exclusive rights to electricity purchasers (monopolies) have a very high track record of honouring their committments. PS this is a coal fired cogeneration (sells electricity and steam) plant not hydro-electric. gsun