Thursday, May 21, 2009

LDK Solar Q1 Conference Call - 5/21/09

The Conference Call Transcript for LDK's Q1 Results is available.

Though the tape has been painted negatively, and the immediate financial reports were not optimistic, the key points, in my estimation, had to do with the status of the Polysilicon Plant, and they were HIGHLY optimistic.

They've reiterated that the first 5000 Ton Plant would be "mechanically complete" by the end of Q2, and that the second line would be complete by the end of Q3.

More importantly, they've stated for the record that ALL of the Reactors for the first line are on-site and installed.

Per Nick Sarno:

"We have completed the installation of all 20 reactors in the first train, 10 converters have also been installed. Off gas recovery has been turned over to LDK and the TCS train one are being finalized."

This is an critical. We know from the GT Solar CC just a week ago that they claimed to be delivering a batch of Reactors to LDK at the end of June and first week of July. I had hoped, but wasn't sure, that this must be the set of Reactors for the Second Train. This now seems to be confirmed.

So, LDK has ALL of the GT Reactors for the First Train, and deliveries of the Second Train Reactors are upcoming. Just as hoped.

We have also found out that the Reactors are paid for, and LDK will now be able to scale back their Capital Expenditures. They're commissioning this line at the moment, per Sarno, which essentially suggests that the overall structure of the Plant is also significantly near completion. What I mean by this is that the overall Plant, which is made up of Three separate Production Lines, shares components between all three Lines. Any number of missing Central Components could make production from any one of the Lines impossible. So, if LDK is confirming that Production for Line one is set to begin soon, it indicates also that Critical Components for Lines two and three are also effectively ready for Production.

Other odds and ends include the fact that LDK has submitted three new patent applications, as well as have been very active in advancing the technology of wafermaking by way of improved equipment and chemical techniques.

As a final note for this entry, thanks to Jesse Pichel, who just might have gotten the ball rolling for LDK to release some new Poly Plant Images in the near future.

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