Energy / Resources

How valuable is Iluka Resources’ MAC royalty?

Joseph Kim

July 12, 2019
One mining company that does not get frequently mentioned despite being in the ASX 100 Index is Iluka Resources (ASX:ILU). The company owns a significant asset known as the “MAC royalty” receiving an extremely lucrative royalty rate on iron ore revenue generated from BHP’s Mining Area C mine. continue…

by Joseph Kim Posted in Companies, Energy / Resources

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Which direction next for east coast gas prices?

Andreas Lundberg

July 8, 2019
Recent reports suggest that Centre Alliance has convinced the Federal government to introduce measures to cut gas prices on the east coast. Given the importance of gas prices to the east coast economy, this is a really important step. The question is: how successful will it be? continue…

by Andreas Lundberg Posted in Energy / Resources

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Domestic vs. international gas prices

Andreas Lundberg

April 12, 2019
I have previously shared my view on Australia’s high energy prices and why investing in new coal producing power is a bad idea. Today, I would like to revisit what has happened in international liquefied natural gas (LNG) markets and compare it to what is happening to domestic gas prices. continue…

by Andreas Lundberg Posted in Energy / Resources

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Who’s worried about oil prices?

Lachlan Mackay

December 4, 2018
The price of oil has slipped to a 2018 low of under $60 per barrel, but what does this really mean for us? As usual, it appears difficult to predict ongoing impacts in the economy, even for the experts. In the US, NPR reported Oil Prices Hit a New Low. Here’s Why That Might Be a Bad Thing, suggesting that a rapid drop in oil prices may be normal, but when combined with the recent stock market decline and trade tensions indicates that the global economy is softening. continue…

by Lachlan Mackay Posted in Editor's Pick, Energy / Resources

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Oil Creeping Back Up

George Hadjia

October 8, 2018
Oil prices, after falling from the highs of over $100 per barrel in 2014, had previously struggled to push above $60 per barrel. That has now changed. With Brent crude at north of $80 per barrel, it is now almost double the price it traded at during mid-2017. This has implications not just for oil producers, but for virtually every company reliant on consuming oil-based products. continue…

by George Hadjia Posted in Energy / Resources

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WHITEPAPERS

FINDING ATTRACTIVE RETURNS IN A LOW RATE ENVIRONMENT

There is a strong case for interest rates remaining structurally lower for a protracted period of time. In our Part II Whitepaper, we consider the consequences on asset prices – in particular on equity prices. We believe the equity market offers investors attractive risk-adjusted returns on average and that equity risk is being priced differently between certain geographies and sectors. This raises the prospect of attractive opportunities ahead.
download the whitepaper
China’s Insatiable Demand for Commodities

Amit Nath

September 5, 2018
Despite only having 19 per cent of the world’s population and generating 15 per cent of global GDP, China consumes more than 50 per cent of the world’s steel, copper, coal, nickel and cement. In fact China has used more cement in 3 years than the United States used in the entire 20th century. continue…

by Amit Nath Posted in Energy / Resources

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The Revolution at Evolution Mining

David Buckland

July 12, 2018
Jake Klein, the gold entrepreneur has lead an incredible transition at Evolution Mining (ASX: EVN), and over the past four years the Company’s valuation from an Enterprise Value to EBITDA ratio has tripled from sub 3X to nearly 9X to reflect this. continue…

by David Buckland Posted in Companies, Energy / Resources

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Will new LNG import terminals cut the price of gas?

Andreas Lundberg

June 27, 2018
Australia has more than 257 trillion cubic feet (TCF) of gas resources and 885 TCF in prospective resources.* And we’ll soon be the largest gas exporter in the world. But, somewhat shockingly, new gas import terminals are about to be built on our east coast to cut the price of gas. I hate to be a doomsayer, but I don’t think this is going to work. continue…

by Andreas Lundberg Posted in Editor's Pick, Energy / Resources

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Have we reached peak stupid on electricity?

Andreas Lundberg

April 10, 2018
Sometimes you have to ask yourself this question when you read ideas put forward by politicians. Take the recent proposal from a group calling themselves the Monash Forum. They want the government to fund, build and operate a new coal fired power station to address rising power prices and the outages that east coast Australia experienced in the summer of 2016/17. There are many reasons why I think this is a BAD idea. continue…

by Andreas Lundberg Posted in Energy / Resources

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Two reasons we don’t invest in mining firms

Andreas Lundberg

November 13, 2017
As most of our readers likely know, you are very unlikely to see any Montgomery managed funds invest in mining companies. And recent news out of China supports our investment approach. continue…

by Andreas Lundberg Posted in Energy / Resources

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