What is Talon worth?, page-144

• Will they approve permits - there is an existing procedure in place. Walyering was approved via that process. Is there something in particular that makes you think Muchea would be an issue? Yes - a change to the Labor government's policy and/or outcome of the Voice
• What royalty will they seek - who is "they"? And under what basis would royalties be sought? "They" = Labor government
• Will there be limits on how much gas must be sold domestically (at capped prices) - this policy is already in place. TPD has no export exemption. No exemption currently in place, but subject to change based on Labor's policy at a given moment
• What price cap will they set? - Again, this policy is in place but I note small operators can apply for an exemption if selling into the domestic market. Again, policy is currently in place, but subject to change

https://www.copyright link/world/as...n-s-most-trusted-lng-supplier-20230704-p5dlpu

It's clear that there is heightened sovereign risk every time Labor govt is appointed.

Think

• Gillard's Mineral Resource Tax (which was subsequently unwound after projects were deferred)
• Planned "super tax" and banking sector
• Recent gas policy, prior to yet another reveal in policy position
• More recent attacks on the property sector (where they seem to want to restrict rental price increases)

Labor seem to forget the basic and most fundamental equation of corporate finance and capitalism, being the relationship between risk and reward.

They attack the reward part of that equation, without consideration of the risk that those equity investors undertook. Basically, they expect to tax the upside, which alters the CAPM.

I have imposed a moratorium on any further investment in Australian assets, that are subject to Labor political risk. Said differently, I can find a better return on US or European assets without having to worry about what tax the Labor govt might add on.

That's why the ASX remains where is has, whilst the Dow Jones spirals to new highs (and that's with the Democrats in power, just imagine the upside when the Republicans gain control again).

Does this context assist?