GLX - Gulf X

mick2006 said:

Just re-reading todays presentation, quite amazing the company is targeting production of 10 million barrels of premium diesel using a proven coal to liquid technolgy.

Taking information from the company presentation,

At todays price premium diesel is fetching around $140 usd per barrel

With cash operating costs of $45 usd a barrel,

So a cash margin of $95 per barrel

or $950 million per year.

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mick2006 said:

with doom and gloom articles regarding oil prices starting to appear in australian papers, its no wonder why CTL and GTL plays are starting to gain attention.

with people now predicting high oil prices for the next decade, it is projects such as GLX's coal to liquid (premium diesel) that will be required going forward to stop Australia's reliance on imported oil/refined products.

given the large increase in activity in GLX's shareprice, I think this is just the beginning as investors start to take long term positions.

below is an article from todays age.


Petrol pain set to last until 2016
Email Printer friendly version Normal font Large font Nassim Khadem and Tom Arup
May 24, 2008

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Comment Petrol price pain will spoil the PM's honeymoon

PETROL prices will keep rising for at least another eight years and inflation will continue to plague the Australian economy in coming months, creating further pain for families already hurting from higher living costs.

Analysts predict the cost of oil will keep rising until 2016, with the price at the petrol pump tipped to reach $1.70 a litre in the next fortnight, and $2 a litre by next year.

But consumers won't just be hit at the bowser. Retailers are saying they will have no choice but to charge higher prices for groceries to compensate for increased transport costs.

The political pressure to tackle rising petrol prices is growing, with Prime Minister Kevin Rudd being criticised for saying the Government had done "as much as we physically can" to provide help.

While Mr Rudd said the global price of oil was being fuelled by factors "way beyond the control of a national government", Opposition Leader Brendan Nelson attacked him for ignoring the concerns of everyday Australians.

Dr Nelson said the one thing Mr Rudd could do was reduce the excise on fuel.

An oil and commodities analyst at the National Australia Bank, Gerard Burg, has backed recent predictions that oil could reach $US200 a barrel as the price rises to meet rapid global growth. He said it was unlikely the world would see a downturn in fuel prices in the near future, explaining that futures trading in oil as far forward as 2016 was still at a premium.

Australian Tourism Export Council managing director Matthew Hingerty said higher fuel costs and the stronger Australian dollar threatened to send many small tourism businesses to the wall this year.

Coles spokesman Jim Cooper said that while contracts with transport providers were structured so they were not immediately affected by day-to-day fluctuations in fuel prices, "longer term rising fuel trends do obviously feed into the costs of running our business" and would have to be passed on.

Woolworths director of corporate affairs Andrew Hall said there were severe pressures on trading. Fuel represented 20% of the company's distribution costs, and the rise came as the price of other commodities was also increasing.

While airlines Virgin Blue and Qantas have raised their air fares this week ”” as oil and jet fuel prices continue to skyrocket”” analysts say discount air fares are here to stay.

Economists say that while the US recession and credit crisis could dampen growth, the more likely outcome is that China will keep powering ahead, buying our minerals and boosting our national income.

Access Economics director Chris Richardson said the inevitable consequence of greater prosperity was higher inflation and more interest rate rises. He said that while a segment of the population was hurting from interest rates, governments, businesses and households generally would add to demand. "Stressed-out suburban households may not be a big enough set of people to break the numbers on inflation," he said.

But Macquarie Bank interest rate strategist Rory Robertson said interest rates would slow growth and inflation eventually.

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redback said:

ps., forgot to say most of these smaller companys are at least 10 YEARS away from proving up anything, never mind producing anything

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redback said:

Hi Mick, I see you are all over the net promoting your latest purchases, there is no doubt that the (day trader) market has found it's newest hot sector, but words of caution would be prudent here, which of course will be ignored by the traders who will milk this bubble for everything in the next few weeks, most of these small fry haven't got anywhere near the money to realise the hype now on, most of these minnows will fail in a big way without major backers, but which ones?, don't get too carried away with your posts, I see you sold some of your CXY to buy some GLX, this is OK, but people listening to you must realise that this is a bubble, nearly all of these smaller hopefuls have less than $2 mill in the bank without exception, only the better, or should I say the conducive deposits will prove to be viable, and we have countless amounts of these deposits, but nevermind--promote away, all of these opportunistic little companys will also milk the market like there is no tomorrow, only problem is, most entering late will do their money big time, the dilution required to even get to first base is going to prove too horrific for even the best of the optimistics amongst us

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LittleMak said:

You raise some interesting points Redback, what are your thoughts on the UCG-GTL companies LNC, MEE, CXY? Who do you see as best positioned and able to survive longterm?

Has anyone read or heard on CXY's indicated or inferred coal resources? What size deposits do they have at Kingaroy (or in Australia?)

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farout said:

If he is using multiple nics then he will soon enough lose his credibility. You can't use more than one pen-name on this new forum without being caught.

As for GLX, I think it will show it's true colours this week. Should be many a person pressing refresh on GLX's market depth.

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