Roxby Downs - update

[andrew_woolman]

Does anyone have an up to date opinion on Roxby Downs?

We’ve all seen the news that BHP announced a half-yearly profit of $10.56b is investing 80billion in growing it’s assets. The Olympic Dam expansion is on track to be given the go ahead sometime around the end of the year or early 2012. If that fails then the mine will still operate, but property prices will go down and vacancy rates will go up. Demand for property at the cheaper end will be the most popular. Roxby Downs has a 0.3% vacancy rate. The towns existence is dependent on the mine. Once it closes, the town will cease to exist. Olympic Dam is the world’s largest copper and uranium mine with expansion plans to make it the largest open cut mine in the world. Once that happens property values in Roxby Downs will take off again.”

 

[JT7]

Does anyone have an up to date opinion on Roxby Downs?

We’ve all seen the news that BHP announced a half-yearly profit of $10.56b is investing 80billion in growing it’s assets. The Olympic Dam expansion is on track to be given the go ahead sometime around the end of the year or early 2012. If that fails then the mine will still operate, but property prices will go down and vacancy rates will go up. Demand for property at the cheaper end will be the most popular. Roxby Downs has a 0.3% vacancy rate. The towns existence is dependent on the mine. Once it closes, the town will cease to exist. Olympic Dam is the world’s largest copper and uranium mine with expansion plans to make it the largest open cut mine in the world. Once that happens property values in Roxby Downs will take off again.”

Snap...I just picked up that issue of YIP earlier this evening and looked at Roxby Downs. I've had a really close hard look at the underlying fundamentals in relation into the rise of commodities off the back of the industrialisation of developing nations such as China, India and Asia. The Financial Review is an excellent source of information and features some informative and insightful articles.

The RBA has stated it expects the current boom on commodities to last some 20 -30 years. IMHO I think that this will be the case. Commodity price booms appear to follow the industrialisation of nations. We witnessed this at the turn of the 20th century with Britain, the USA after the 2nd World War and then Japan.

As you know China and India have a huge population. China is moving away from a socialist structure towards capitalism. In the past we saw 2 classes of society in China the rich and the poor. With the development of capitalism comes the development of the middle class and of course the upper class. This new middle class wants vehicles, houses etc etc hence the demand for commodities increases.

China and India have a very very long way to go. I am very bullish on this topic and believe over the next 20 - 30 years fortunes will be made. We are only at the very early stages!

What a rant!

I'd be watching the Olympic Mine development very closely.

JT