Good afternoon
equities continue to consolidate today, with a slight upward bias. Metals are seeing some profittaking- while Palladium is pretty weak, following it´s intra-day record of just above 2000$/oz yesterday, gold is slightly up, and base metals are slightly down…
German Business Confidence improves for the third month in a row…
Australia experiences the hottest day in history - 40.9 degrees on average across the country! That´s hot, indeed!
Strike - very positive update from a research/consultancy house called Rystad, a worldwide oil& gas specialist. They confirm, what we have been thinking: As larger the gas accumulation in the Perrth Basin becomes, the better! The consultant sees the domestic market as well supplied in the short run, but notes higher long term contract prices are still at 4-5$…they also see Waitsia ( Mitsui + Beach Petroleum ) and West Erregulla ( STX and Warrego ) as the cheapest , potential producers in Western Australia, with total costs below 3A$/GJ.
They see strong upside, if resources can be increased slightly, to get petrochemical industry basing itself in Western Australia, due to extremely low energy costs ( 1 GJ in WA costs about 4.50-5 GJ, while on the East Coast, contracts are close to 10A$ ). They see even better upside, if the Perth Basin operators can establish resources of 4-5-or more TCF, which would warrant the large capex to build a LNG plant, prices would move to world market prices, potentially even higher and with few size-restrictions. I think this report has been the driving factor behind today´s move. It would confirm, that the market sees marketability of the relatively large gas resource as the major risk - as this report is adressing this issue.
If you want more info, please let me know. In my opinion - a very cheap stock!
Genex - announced the financial close for the Jemalong Solar Plant in NSW. Construction has now started, and will take 12 month for the 50 MW plant. First production late in 2020. The existing loan for the Kidston Solar Plant has been refinanced at the same time, at preferential interest rates. The project has a life of 30 years, using well known Tier 1 equipment providers.
Northern Star - incredible, how deep markets are these days, when it comes to stocks, which are included in major indices! The large placement in NST went very well, and was “heavily oversubscribed”. The SPP will induce some pressure, as will the fact, that placees are making a very quick 10% at today´s strong share price. I think there might be some temptation to let some go, once the new stock becomaes tradeable in a few days time! But obviously, the market is excited about a JV between two of the best Australian gold mining MDs.
Have a nice evening
WS