“If the burn contaminates the water table then the project would have to shut down”
Granted. But what do you assess as the ballpark probability of this occurring? 1%,3%,10%,25%,50%? And can you justify your choice?
I may be too glib about it, but I’d be plumping for the 3% area. Correct me if I’m wrong but you didn’t before when I suggested there only appeared to be 2 sites out of the various trials that have suffered in this way. Subsequent projects, including this one, will have learnt from what went wrong.
Moreover I note with all of Australia to choose from and a Melbourne base, Mr Walker’s having his second go only about 60 miles from his first one. From the outside it looks a fair bet that he’s selected a site which he believes enjoys as similar geology to Chinchilla as one could hope to find. Not that that means the site won’t have to demonstrate its suitability, just that the chances of it ultimately failing in this way are as low as one could hope to get.
IF that’s a reasonable guess as to the level of this particular risk then as a diversified equity investor it is just irrelevant. Funding and whatever I don't know about are far bigger worries. And at that kind of level it’s manageable even to a straight debt investor – especially as we’re all agreed there’ll be a few months of monitored trial burn mitigating the risk before funds are drawn down.
CXY Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
