DBI - Dalrymple Bay Infrastructure

[System]

Dalrymple Bay Infrastructure (DBI) is an Australian infrastructure company. Through wholly owned entities, DBI owns a 100% interest in the 99 year lease of Dalrymple Bay Terminal (DBT), the world's largest export metallurgical coal facility.

DBT is a regulated multi‑user export terminal with current capacity of 85Mtpa. It is located within the Port of Hay Point, approximately 38km south of Mackay and 900km north of Brisbane. DBT services mines in the Bowen Basin, a 60,000 square km region in central Queensland that is the world’s largest metallurgical (or met) coal export region. Metallurgical coal is used for steel production. DBT supports mines in the Bowen Basin to provide a reliable supply of metallurgical coal to steel producers in export markets. Approximately 80% of coal shipped through DBT in 2019 was metallurgical coal.

DBT is the lowest cost multi‑user export pathway for mines located in the central area of the Bowen Basin on average.

It is anticipated that DBI will list on the ASX during December 2020.

Dalrymple Bay Infrastructure | Dalrymple Bay Terminal | DBI Australia

dbinfrastructure.com.au

 

[Dona Ferentes]

Infrastructure. OK. ... but Adani? a hard sell to punters these days.

 

[Dona Ferentes]

floated today, (in a subsurface way)

IPO at $2.57, but trading at $2.14 now.

Not for me

 

[Garpal Gumnut]

floated today, (in a subsurface way)

IPO at $2.57, but trading at $2.14 now.

Not for me

Unfortunately there is coal to go through or has gone through this outfit piled at the inland mines, on coal trains, at Dally Bay waiting to load on ships embarking for China, on the high seas and bobbing about waiting to unload off China.

Somewhat of a log jam.

Once the constipation eases it should recover. Ole Xi needs to get his migraines about Australia sorted and all will be sweet.

gg

 

[Dona Ferentes]

DBI's executives have argued the coal terminal will benefit for ongoing demand for metallurgical coal used in steel-making, which accounts for about 80 per cent of its coal exports.

“As a regulated asset, DBI provides a stable, low-risk, long-term yield opportunity underpinned by strong and predictable cash flows, which will be attractive in the current environment," DBI chief executive Anthony Timbrell said.

The coal terminal's former owner, Brookfield Infrastructure Partners, is keeping a 49 per cent stake for the time being but can gradually sell out of the stock. Brookfield is required to hold one-third of its shares in escrow until the release of DBI's interim financial results for the six months ending in June 2021; another one-third until the release of its full-year results for the year ending December 2021; and the final third until the release of interim results for the six months ending in June 2022.

The Queensland government has taken a 9.99 per cent stake, which is being managed by the Queensland Investments Corporation's (QIC) state investments team. Retail took up 33%.

 

[galumay]

It looks like a stranded asset for investors, starting with the Qld Gov and then any punters silly enough to buy in. They should have squeezed in SaaS somehow, then it would have mooned!

 

[InsvestoBoy]

Nobody cares about DBI, but DBI doesn't care about nobody either

 

[divs4ever]

this caught my eye today , now while i am very adverse to high debt levels and this has plenty ( especially for something with a long-term lease on a key asset )

how does this go in a world of 'green technology ' with the state government as a smaller shareholder does it face a compulsory buyout in the future as government go 'greener ' after all it is only a leaseholder and blatantly killing the lease without adequate compensation puts a big red flag on future private investment in the state/nation , imagine if they tried to same on SYD ( or whatever it is called now )

goes ex-div. soon , i think it is Monday ... but bought ex-div. as a capital gain play , perhaps ?? ( and some divs on the way )

 

[Value Collector]

this caught my eye today , now while i am very adverse to high debt levels and this has plenty ( especially for something with a long-term lease on a key asset )

how does this go in a world of 'green technology ' with the state government as a smaller shareholder does it face a compulsory buyout in the future as government go 'greener ' after all it is only a leaseholder and blatantly killing the lease without adequate compensation puts a big red flag on future private investment in the state/nation , imagine if they tried to same on SYD ( or whatever it is called now )

goes ex-div. soon , i think it is Monday ... but bought ex-div. as a capital gain play , perhaps ?? ( and some divs on the way )

I first learned about the coal terminal back in 2008, when it’s holding company Babcock and brown Infrastructure was in the process of going bankrupt, I was buying its debt (asx-Beppa) for 6 cents on the $1, it worked out well I was paid out 35cents from memory.

But it shows even the quality asset such as that can get into debt troubles when money gets tight.

It’s a great asset, but like you I have concerns about the coal export industry, I wonder whether there is life after coal for the port.

 

[divs4ever]

well an export terminal is an export terminal if not coal what could it be converted to ( cost effectively ) ??

the more obscure question is will the climate agenda stop seaborne transport completely , going to be really difficult to go 'green ' in shipping .

now would there be a buyout of some sort in the foreseeable future , maybe the Federal Government would buy it for a submarine base ( as if we really needed more submarines ) but the excuse would be to move away from coal

PS i hold NHC so face the same issue there

10 years back they would lock me up in the crazy house for ideas like this .. but here we are

 

[Value Collector]

well an export terminal is an export terminal if not coal what could it be converted to ( cost effectively ) ??

the more obscure question is will the climate agenda stop seaborne transport completely , going to be really difficult to go 'green ' in shipping .

now would there be a buyout of some sort in the foreseeable future , maybe the Federal Government would buy it for a submarine base ( as if we really needed more submarines ) but the excuse would be to move away from coal

PS i hold NHC so face the same issue there

10 years back they would lock me up in the crazy house for ideas like this .. but here we are

Well, I think it’s going to have a good business exporting Met Coal for at least another 10-15 years, but after that I think the sky’s will be cloudy if it doesn’t have a solid transition plan.

At the end of the day, even if you get rid of the coal loading infrastructure, you still have a deep water port access with a route through the Great Barrier Reef. So it’s just a matter of working out if any other commodities can be shipped through there.

Could it be a loading terminal for hydrogen or synthetic liquid fuels? Or some other mining products? I don’t know, but once the writing is on the wall that it’s coal business is ending in say 5 years, share holders will want to know there is a viable transition plan or they won’t be willing to buy it at low PE ratios.