Furthermore, if you consider Casino in isolation from macro factors it also looks compelling.
MEL have indicated that their first commercial sales will in fact be to the local area. They have entered in to a GSA with Richmond Dairies and are allegedly in advanced negotiations with a soon to be constructed industrial hub, supply to these business will be via pipeline from well head to premises. This will dramatically reduce energy costs.
They have also indicated that they would like to make micro CNG sales to the area which means that the greater area will be able to capitalise on reduced prices.
It appears the LWP is on hold for the meantime, so focus will be local. Expect things to ramp up in this regard once the lateral wells are drilled in early 2013.
Once supply has been distributed out to the area, and locals see the benefits of reduced power bills (and business input costs) then the world is MEL's oyster, beginning with greater NSW.
MEL Price at posting:
16.0¢ Sentiment: LT Buy Disclosure: Held
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