The Outlook for Capital Raisings

Theres a lot of capital raising going on in the (Australian) resource market at the moment.

This is really very very good because weve had the best part of two years where companies just havent been able to raise money, particularly at the smaller end, and its the smaller end companies that have the really big impact on things like exploration and development.

One of the things weve been talking about for the last 10 years is that exploration as a sector is really undervalued, there is no optionality value in the tenements, there is no real value for the tenements, they still seem to almost be a liability, but going forward as these companies get more money youll start to see the increases in resources that were already seeing in things like nickel and iron ore, and gold to a lesser degree. Copper has also moved up , obviously with the things that are going on in Queensland.

But the dollars that have been spent, the new resources are coming through, the new projects are coming through, and theyre all adding to our export revenues.

The other thing I like to point out: the oil and gas sector, which we have been very very keen on, in terms of on shore exploration in Australia, particularly the northern territory, is going to be very very big in 2010.

Weve got the Falcon discovery in the Bedaloo Basin, you must look at our website (www.mpsecurities.com.au ) to look at the significance of that. Weve already got Central Petroleum in the Armadus Basin, and were going to see a couple of others in the Georgina Basin, so theres going to be a lot of activity. The results of that will be far, far bigger than anyone might have imagined, even three months ago, but youre going to hear a lot more about that, were very excited.

So just watch whats happening and keep in touch with people at MPS.

Thanks for your time.

Category:

News & Politics

Tags:

• Capital Raisings
• Bedalook
• Central Petroleum
• Falcon
• Georgina Basin
• Armadus Basin
• Australian Resources
• Resource Investment
• Stock Market
• Small Caps