Guildford coal have plans to mine coal around Hughenden in the coming years, it could be a place to keep an eye on just for interest sake.
Not advising anyone to invest, lets just wait and see where it goes !
http://www.guildfordcoal.com.au/docs/HighGrade_Guidlford_Coal_May_12.pdf
http://www.townsvillebulletin.com.au/article/2011/12/09/289651_business.html
hmm thanks for the heads up… have to weigh up this news with other stats in which hughenden population has been declining?
Properties in Hughenden have increased 116% in 5 years to a median of $130,000.
What will the next 5 years growth be like ?
http://www.abc.net.au/rural/regions/content/201207/3556103.htm?site=northqld
Even at the median price of 130k, I recently found about 2 properties in Hughenden that were giving very good yields, and the prices were just about 130k as well. With the giuldford coal plans, that should sweeten the deal.
The population in Hughenden is comparatively low though.
The problem with Hughenden is that the area is predominantly thermal coal. Thermal is the type most under pressure from LNG and a global recession. India was one of the big buyers of thermal coal for power generation but is struggling to keep generation plants open even with extremely low coal prices currently.
Many expansion projects were conceived 5 – 10 years ago when the prevailing economic drivers were a belief in a massive new uptake by India and China to fuel electricity production and consequently industrial modernisation. That's proving to be a substantial over estimation in both countries abilities to modernise at a pace equal to capacity expansion here and globally. The current prices for thermal coal aren't sustainable in the long term here and are, for India at least, not sustainable for them either.
To compound the problem African projects are seen as (especially Mozambique) more sovereign friendly and economical.
Pricing, taxes and union troubles do not make for a bright future in east coast coal.
Hi Freckle,
I cant argue with that, Australian politics and tax grabs have not created an appealing environment for the foreign investor.
Why wouldn't they look overseas if costs to mine and transport the same product are cheaper.
Something broke back in Jun/Jul and I think it was the Chinese economy. Electricity consumption simply fell off a cliff. A strong indicator of economic activity. At first I thought it may be just a statistical glitch and things would rebound back again fairly quickly. When I didn't see this happen I said to a friend to put off any big equipment buys for the time being.
I think I'm probably right in that China has actually crashed. Not hard landed but actually crashed. I think real GDP is under 4% and will be less than 3% by next year.
Things are starting to head south fairly quickly now in China. Iron Ore was $104 just a day or so ago. Today it just hit $99.60. Not only has it smashed the supposed $110 – $120 floor but its simply punched through the $100 mark like a falling knife. Production inventories everywhere are growing at an alarming rate as export orders fall faster than production. My instincts tell me things are way way worse in China than they're letting on.
The term due diligence :
"Due diligence" is a term used for a number of concepts involving either an investigation of a business or person prior to signing a contract, or an act with a certain standard of care. It can be a legal obligation, but the term will more commonly apply to voluntary investigations. A common example of due diligence in various industries is the process through which a potential acquirer evaluates a target company or its assets for acquisition.[1]
http://en.wikipedia.org/wiki/Due_diligence
Definition of 'Due Diligence – DD'
1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to a sale.
2. Generally, due diligence refers to the care a reasonable person should take before entering into an agreement or a transaction with another party.
http://www.investopedia.com/terms/d/duediligence.asp#axzz24T3qAu9A
DD is a difficult task for all investors with GFC and GFC v2 continuing to hamper the world economies, DD becomes more than what is just listed in the definitions above, an investor now needs to look at what is happening in other markets to see how it may effect towns here in Australia, as we could end up holding property lemon's from not seeing the bigger picture. The more information we can glean from behind the scenes or from reading through the lines the better our choices can be.
Keep the opinions and info coming Mr Freckle, I appreciate how you look at things from other angles.
I haven't seen any tables or graphs for a while. ( that's disappointing )
Dubstep wrote:DD is a difficult task for all investors with GFC and GFC v2 continuing to hamper the world economies, DD becomes more than what is just listed in the definitions above, an investor now needs to look at what is happening in other markets to see how it may effect towns here in Australia, as we could end up holding property lemon's from not seeing the bigger picture. The more information we can glean from behind the scenes or from reading through the lines the better our choices can be.
Keep the opinions and info coming Mr Freckle, I appreciate how you look at things from other angles.
I haven't seen any tables or graphs for a while. ( that's disappointing )
Your summary of DD is spot on. Many of the newbies here don't yet understand how to look and analyse the big picture yet.
Posting graphics here is a little challenging to say the least. It's up there with the worst site upgrades I've ever seen. I feel like a trady trying to work with a kids tool set he got for Xmas.
I have been keeping my eye on this. However haven't seen Guilford mention where they will source their workforce.
Hi Biggie,
Where do you think they will come from ?
My guess is China.
That wouldn't surprise me at all. And I assume that down the track we will hear the company stating that due to the remoteness of Hughenden that they want a high percentage of FIFO workers.
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