Bernhard, I think you may rue the day that you sold GRK, but I can’t blame you for buying GDY. I once owned GDY but recognising the value represented by GRK’s location, experience and diversification prompted me to buy a few. A rise of 20 -40 cents in GRK represents a much larger percentage gain than a 20-40 cents rise in GDY. GDY’s location 500km from OD did not impress me either. However, success at GDY will bode well for the entire Geothermal sector IMO. The fact that Origin is willing to cough up the money is a good sign of confidence in the largely unproven technology. What I am waiting on is news at Soultz.
Whilst the election campaign has brought climate change to the fore, it has not aimed any policy specifically on any particular technology like Geothermal, except for Labor’s $50 million Geothermal drilling fund.
IMO, GRK is hamstrung by its cash position. It is only a matter of time before the company can form a JV with a major company like Origin. When they do, they can take full advantage of the government grants available.
When GDY does build the 500km of power lines to OD, GRK can piggy back with its conventional Patchwarra project.
Labor has pledged $1 billion towards desalination will be good for GRK’s Upper Spencer gulf project.
I am not going to put my house on GRK yet, but I am happy to hold. Gold luck with your investments.
GRK Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
