gdy 105 million jv origin energy, page-27

Bernard, I just noticed your post on the GRK thread. I thought I'd respond here, so as not to further offside the posters who are contributing excellent research to the forum, and whose toes I have stepped on quite enough.

I also view this Origin move as somewhat of a death-knell for GRKs Olympic Dam aspirations. The simple fact is: Olympic Dam will be the initial primary target for GDYs electrons. Using their vast thermal advantage in conjunction with their exclusive Kalina Cycle, it could be safely inferred that GDY will offer electricity to Olympic Dam cheaper than GRK, with a more reliable supply (minimum of 50 years longer economic life).

With Origin throwing their weight behind this venture to such a degree (spending will now approach $150M), it does not make sense to develop the thermal resource at O.D when the Cooper Basin resource can promise cheaper electricity and longer supply. How can GRK get backing when all the scientific evidence says they cannot compete at an economic level?

The resource is in place, the funds are gathering, the outcome looks set.

I do not confuse this with the failure of GRK - I would expect they simply pursue other targets, whether by new acquisitions, or by further investigation into their conventional GELs in the Cooper Basin. Why dig a hole 5km into solid granite at the cost of at least $6M when chances are the resource will not be developed in the next 100 years? They have lucked out, I believe (once again, all just an opinion), and like Ortahaza, their previous failed project, O.D is destined for the scrap heap.

As disclosure, I still hold GRKOA, understanding my opinions are not necessarily correct or shared by the market, but logic and science seem to be leaning heavily in GDY's favour as far as O.D is concerned.

Not an anti-GRK rant here, and I acknowledge that the small market cap could, like every other small-cap geothermal, lead to large returns on minor news.