Energy / Resources
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Where is the demand for heavy equipment?
David Buckland
November 24, 2014
At last week’s Annual General Meeting, Seven Group Holdings Limited (ASX: SVW), the Kerry Stokes-controlled diversified operating and investment company, revealed there was more pain to come from their WesTrac Australia business.
WesTrac operates as the sole Caterpillar dealership in WA, NSW and the ACT. It supplies and services new and used Caterpillar machinery for the mining, construction and forestry markets. continue…
by David Buckland Posted in Energy / Resources, Insightful Insights.
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Iron Ore Pricing: Where is the floor?
David Buckland
November 14, 2014
Citigroup Inc. analyst, Ivan Szpakowski has slashed his iron-ore forecast to average US$65/tonne in 2015.
Ivan is looking at the iron-ore price bottoming in the September 2015 quarter at an average US$60/tonne on the back of renewed supply growth and further demand weakness. About 140 million tonnes of export supply growth is expected in 2015, with the bulk of this coming from Rio, Vale and BHP.
When the Australian Federal Budget deficit of A$30 billion for the 2014/2015 financial year was announced in May, the iron-ore price was above US$100/tonne and few analysts could see it would decline to the current levels.
So far this calendar year, the iron-ore price has declined 44 per cent from US$131/tonne to US$74/tonne. If Ivan is right, there are further declines expected.
As we have previously noted, it is worth remembering that for decades prior to 2004, the price of iron ore traded between just US$10/tonne and US$20/tonne. The price then rallied to $187 in 2011. It has been falling ever since. Today’s experts guessing iron ore’s near term levels are the same people who failed to see the current levels materialising.
by David Buckland Posted in Energy / Resources, Insightful Insights.
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A lot has changed in a month – now its Ausdrill’s turn
David Buckland
October 22, 2014
Less than four weeks ago, Ausdrill Limited (ASX: ASL) released its 2014 Annual Report and Notice of AGM. At the time, the company was “…expecting an improved result in FY15 with improvements expected particularly in the Energy Drilling Australia business and in the African Mining Services business”. continue…
by David Buckland Posted in Energy / Resources, Insightful Insights.
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Titan Energy Services Limited and the rapidly shifting CSG market
David Buckland
October 7, 2014
This blog post follows on from a piece I wrote back in July, on Titan Energy Services (ASX: TTN). continue…
by David Buckland Posted in Energy / Resources, Insightful Insights.
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Is it time to buy gold?
Tim Kelley
October 6, 2014
The price of gold has been a source of angst in recent years. After getting up to US$1,900/oz in 2011, it has more recently fallen to around US$1,200/oz. This decline, combined with a resurgence of volatility in financial markets, has prompted discussion on whether gold now presents as an attractive investment. continue…
by Tim Kelley Posted in Energy / Resources, Insightful Insights.
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The Essential Ingredient; Humility.
Roger Montgomery
September 23, 2014
Since 2010 here on the blog, we have been warning investors consistently about the dangers of ‘investing’ in iron ore. Let us explain. continue…
by Roger Montgomery Posted in Energy / Resources, Insightful Insights.
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Arrium: Burning the cash
David Buckland
September 22, 2014
During Sky Business’ Your Money Your Call – on which the Montgomery team regularly appear – there is a segment entitled ‘Buy, Hold, Sell’. One of my preferred ‘Sells’ over recent years has been Arrium Ltd (ASX: ARI), formerly known as OneSteel. continue…
by David Buckland Posted in Energy / Resources, Insightful Insights.
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Time frames and iron ore
Tim Kelley
September 17, 2014
So much of investing comes down to time and perspective.
In the short term, the market is awash with random noise – and one of the best things an investor can do is keep it away from their investment decision-making. continue…
by Tim Kelley Posted in Economics, Energy / Resources.
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Big Miner Boom?
Roger Montgomery
August 28, 2014
Before we launch into the resources discussion, an update on our Yellen-could-keep-rates-lower-for-longer-fuelling-a-possible-stock-market-boom thesis. continue…
by Roger Montgomery Posted in Energy / Resources, Insightful Insights, Value.able.
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Titan Energy Services Limited
David Buckland
July 16, 2014
Appearing recently on Your Money Your Call, my fellow panelist recommended Titan Energy Services Limited (ASX: TTN), due to the strong growth in the Queensland coal seam gas industry. Titan’s share price has traded between $0.40 and $3.70 since its listing in late-2011, and at the current $2.13 it has a market capitalisation of $108 million. With only $11m of net debt (at December 2013), the enterprise value is $119m. continue…
by David Buckland Posted in Energy / Resources, Insightful Insights, Value.able.
