I think it will be all about the numbers when ED reserves 2P are published. STX surely would prefer to negotiate around independently determined figures, so would any potential buyer, the other possiblity is AGIG won't enter a tolling agreement and allow STX full use of 87Tj plant until longevity of the reserve is firmed up. JV partner would still have to share majority of upstream costs but STX get full use. The WE reserves would supply the plant for 14 years if shared but only 7 years if STX only, they may have to land the numbers at ED to make it viable, this is where Kadathinni may also enter the chat. Selling WE for a modest amount would still be my personal preference as i think the tolling would take a big chunk of our profit, get on with Ocean Hill etc....but on the flip side it would present a long term cash flow, set and forget, finance approved already for upstream, and tie in of Kadathinni in a few years. See I just changed my mind again....time for a 19c celebration beer.
STX Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)