Well for one ESG simply haven't delivered on commitments thus far, as far as I am aware they are still 4 years off production as well.
Regarding the Carbon tax, most investors realise that this piece of legislations still has a long way to go before it truely will become legislation. I believe that even if it does get through (which I think is only about a 30% chance right now) it will most likely be watered down and like the last one proposed by Mr K. Dudd (Rudd) will give copious amount of handouts back to big business and the coal lobby just to shut them up, thus nullifying anything the legislation says i is trying to achieve. All it will end up being is a tax of middle - upper income brackets so anyone that earns around 50k a year is going to bear the brunt of this tax. That is why I believe the market has not seen this announcement as the go ahead to buy ESG.
Secondly for the average person after watching programs like the four corners on the CSG industry the sentiment for companies like this was hurt even if the allegations in the above documentary were one sided it should still make greens groups listen, and considering the current amount of sway the greens have in parliament it won't bode well.
Furthermore with the rest of the world becoming less likely to move on carbon prices day by day it becomes evident that global demand for gas won't be vastly affected by Australian policy, essentially it won't benefit ESG to the extent some people think it will.
ESG Price at posting:
72.0¢ Sentiment: None Disclosure: Not Held
