Greenvale Energy
Greenvale Energy’s (ASX: GRV) decision to refocus on its Alpha torbanite (shale oil) project in central Queensland has given the stock some traction of late.
A 5.5c stock in early November, Greenvale has bounced to 10c. It is all about Alpha’s potential to become Australia’s only domestic bitumen producer.
Australia is currently meeting its bitumen needs with imports of 180 degree-heated ship loads of the stuff from China, Singapore and Thailand. So it stands to reason a domestic source would have a major cost advantage.
What’s more, the bitumen price, as posted monthly by the Queensland and Victorian governments, has taken off to $1,650/t, up 52% in two years.
Anyone who has driven on country roads in the eastern states in recent months would have risked their front end as potholes are lurking everywhere after the floods.
Filing them and then upgrading the road system will require lots of bitumen, just as COVID stimulus infrastructure spending adds to the demand.
Greenvale has some work to do but is planning to get a preliminary feasibility study into Alpha out in the first quarter of next year.
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