Whilst today's 6% increase is not as significant a % move as the 125% day of 8th Sep 21... the day of the Significant Gas Discovery at LD-1... it was still epic nonetheless.
1) we had relatively big volume and 2) it was a breakout smashing thru 5c with some early aggressive line wipes. So nice to see.
Just wanted to say tip of the hat to some of us long termers here. I first bought into NWE in 2010... @3.5c... have topped up significantly over the decade, along this ridiculously bumpy journey to avg below 1c... but it was testing times for a long, long time... for the newer holders out there, NWE was 0.2c not that long ago... that's right, 0.002... we even had 0.1c intra-day... some days there was ZERO volume... the stock was plainly unloved.
But here we are today all smiles and high fives... and from our lowest low to today, that's a 2,550% return... and counting. And this is a train I'm not getting off anytime soon!
I watched the MIN preso. Upbeat on their energy plans would be an understatement. Some comments of note for me from CE:
We've got a lot of gas
It's going to be a very substantial earner for MINRES going forward
Opportunities to convert into LNG
Downstreaming where ever we can to add value
40-50 yrs of gas demand from the PB
$100m into holes in next 12 months to go find more gas
LD no doubt it is a large deposit
Q&A comments:
Wants to build a gas plant ASAP, already getting development approvals in place, wants gas plant in place by no later than FY24.
Love his comment re BPT and Mitsui - "they have a pretty good deal" IMO referencing the LNG export monopoly they currently enjoy - CE clearly IMO wants that too.
Gas will power all MIN internal plants at ~$1 GJ, very low gas cost (just think of the margins for domgas @ $8GJ or LNG @ $60+GJ)
Thinking of 250TJ plant from day 1 (I think Waitsia was only 40TJ? and Red Gully is only 8TJ - to give you context)
LD-1 wasn't the most prospective hole they drilled first (better prospects to come)
There was a further question regarding Lithium downstream processing, CE mentioned how important it is to own/control energy inputs as it is a significant cost for mineral / metals processing and referenced how globally urea manufacturers etc are shutting down due to gas/energy prices going up 1,000%+
First of all, I have to say if CE says gas will be a significant earner for a $13b MC coy, then what do you think it means for a $300m MC coy, even with 20-22% asset holding. It is going to be massive earner for NWE.
Re processing plant size, that is equal to Waitisa's 250TJ/d plant which is their stage 2 upgrade... but remember Iain said he sees LD being a base case 250TJ/d and 375TJ/d likely or even higher if they gain export approval. That shows you how confident the JV is on the size of the LD field. So to me, that means LD and surrounding leads/prospects will be bigger than the BPT/Mitsui gas resources.
And lastly, a lot of today's preso qn's were from the big boy brokers/IB's like UBS, JPMorgan, Macquarie etc. NWE are clearly on their radar now and on their client's radar... the fun is just starting.
GLTA
NWE Price at posting:
5.1¢ Sentiment: Buy Disclosure: Held
