News: US appetite for Australian mining & energy

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Transcription of Finance News Network Interview withDahlman Rose Managing Director and Co-Head of the firm’s OTCQX Markets Group, Stephen Nash.

 

Lelde Smits: Hello, I’m Lelde Smits for the Finance News Network and joining me is Stephen Nash, Managing Director at Dahlman Rose and Co-Head of the firm’s OTCQX Markets Group. Stephen, welcome to Australia and to FNN.

 

Stephen Nash: Thank you.

 

Lelde Smits: US based investment bank Dahlman Rose recently listed the 400^th company on the OTCQX International. Could you name some Australian companies that are listed?

 

Stephen Nash: From very small to also extremely large. Fortescue Metals Group Limited (ASX:FMG) recently did a cross quotation on OTCQX. Kingsrose Mining Limited (ASX:KRM), a Perth based gold miner. Linc Energy Limited (ASX:LNC) also is listed on OTCQX. And then, until last Friday Industrea was also quoted on OTCQX. You may recall they were just taken out or acquired by General Electric Company (NYSE:GE). So, that is just a handful. Lynas Corporation Limited (ASX:LYC), in Sydney the rare earths manufacturer, just to name a few.

 

Lelde Smits: A lot of big names there. So, what benefits do you think the OTCQX listing offers to these Australian companies?

 

Stephen Nash: In terms of a key benefit, it’s having a beacon in the US market that allows for dissemination of information regularly to US institutional investors.

 

Lelde Smits: And Stephen, could you give us an example of an Australian company listed on OTCQX which is appealing to US investors?

 

Stephen Nash: Yes, Linc Energy Limited (ASX:LNC) to name one has been of interest given that they are developing a multi-faceted model in terms of both contribution in the development of oil and using their gas to liquids technology as part of that investment into both a resource play and an oil play.

 

Lelde Smits: Though Australia is known for its resource and energy sectors, the end of the mining boom has been in question and in the headlines recently. Do you believe from an American perspective the mining boom has peaked?

 

Stephen Nash: I do not believe the mining boom has peaked. I think that there are a number of factors that have put a dampener on the mining boom that have happened in Australia. One is an increasingly strong Australian dollar. The other is the resources tax [Minerals Resource Rent Tax] that has been put in place. The result of those, a strong dollar and the new taxes that have been put in place has been that foreign investment from a company perspective has fallen off.

 

Lelde Smits: Finally Stephen, with all these factors in mind, what is your outlook for Australia’s resource and energy sectors into 2013?

 

Stephen Nash: With increasing production and demand for resources from China, Australia is positioned very well, certainly with an environment that is reducing the price of the Australian dollar. So, as the Australian dollar comes down in terms of value we would expect the resources industries to perform very well.

 

Lelde Smits: Stephen Nash, thanks for joining us today.

 

Stephen Nash: Absolutely.

 

 

Ends