Downgrade from 70+ to 40+ in my opinion due to;
-Sudden appearance of mega-large competitors with international financial backing in pumped hydro and solar in SA
-Gnx is a one hit wonder, no projects after Kidston which seems assured to complete (no significant technical issues and power take-off agreements in place)
- Rapidly ramping renewables and storage are starting to kill arbitrage profits and reduce wholesale power prices
Only way out is to get best practice pricing to build existing projects (competence) and show new projects (say in WA which could be supported by three/four pumped hydro schemes around the coast, idea -Gnx to develop windfarms on south coast and back with pumped storage to capture big part of SWIS)
GNX Price at posting:
24.0¢ Sentiment: Hold Disclosure: Held
