The future of Kalgoorlie

Discussion in 'Coffee Lounge' started by MarkA, 23rd May, 2014.

  1. MarkA

    MarkA Member

    Joined:
    26th Apr, 2014
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    Location:
    Adelaide
    I'm interested in people's views on where they see Kalgoorlie heading in the next 10 years. I know it's hugely reliant on the superpit there (which I hear could be extended to 2029.) Stats say that with over 30000 people now living in Kalgoorlie only 5000 are employed by the pit.

    The reason I ask is because I'm interested in buying a business there. It's been established for 27 years and consistently the profits are very healthy. I'm wary of what happens in a mining town when one of the big employers leave, what would happen to the population? Would Kalgoorlie become one of these or does it have enough other stuff going on there to survive?

    Anyone actually live there that can give some advise from the ground?
     
  2. marg4000

    marg4000 Member

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    27th Dec, 2006
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    3,906
    Location:
    Brisbane
    If you are unsure of the length of time the business will be profitable, then factor this into the buying price that you offer.
    Marg
     
  3. grow

    grow Member

    Joined:
    20th May, 2014
    Messages:
    30
    Location:
    Darwin
    mother in law lived there five or so years back. the town is strongly influenced by the gold price. Maybe do some research on long term property prices there to find how much cash is around in the town now. I know it took a flogging and mother in law sold when gold was almost 2 k oz , then 6 months later 1500ish and rents and values declined.

    mining supplies high disposable income, i would look at the miners website and read their asx announce ments to find out the lifespan and exploration/results of drilling and sampling in the area to see if there is a decline or likely increase.

    never lived there- only karratha (saw the headdy days of the mining boom there but stupidly bought 2 Ips at the peak for cash flow - bad mistake that i cant afford to sell out of.... approach with caution!