The other day i was listening to Trump talk with the Candian PM about how they don't want Canadian made cars made with Canadian steel and Aluminium. Trump went onto to say the USA is going to get Dozens of NEW steel mills built and use American steel to make American cars in America.
Now it all sound Patriotic and all that BUT .. it got me thinking about Gina and her cozying up to Trump and his Idiologies.
I expanding my thinking on this and thought of the possibility that Hancock Energy may not want to Export its Gas, it may well be land banking gas reserves, to be used as feedstock, for a modern steel mill, she MAY intend to build. Hancock has an endless supply of red rocks for 100's of years, so why not value add. She might even get a large USA financier / even the USA Gov't to underwrite the Steel Mill Build, IF she secures all the long term gas supply.
So i expanded on that line of thinking and asked myself, how much gas would a large steel mill use over a generation lifecycle of say 50 years.
Well not skilled enough to calc that, but I would think 1/2 of WE, plus what she purchase from MinRes, maybe enough to service a Steel Mill for 20 years ??? Don't really know.
My point is this, Gina may not be in hurry at all for the other half of WE. Beach / Mitsui may not want WE gas either for 4 to 5 years until they use up / suck up the gas they have.
Which means, Strike may need to survive on its own cashflow for several more years.
Its not what i want to happen, as i very firmly believed (up till recently) that it was a near certainty that Gina would pounce of STX, within 12 months.
We all, myself included should prepare ourselves for the likelihood that our Capital maybe locked in Strike for longer than we originally anticipated. Tui would say wait / what ??? isn't 10 years long enough already !!!
(20min delay)