Insight
Adani royalty purchase highlights Galilee risks
This report is currently unavailable
Report summary
In August, Adani Group entered into an option agreement with Linc Energy to buy back a private royalty associated with its Carmichael project in Australia's Galilee Basin. The purchase clearly demonstrates Adani's commitment to developing the project, and it appears to have secured the royalty stream at a sizeable discount to our base case valuation. But the degree of uncertainty facing Galilee Basin coal developments suggests Linc have secured a good price.
Table of contents
- Executive summary
- Background to the royalty deal
- Assessing the risk
- Adani's perspective
Tables and charts
This report includes 4 images and tables including:
- Production and royalty earnings assumptions
- Risks to royalty value
- The impact of discount rate on royalty value
- Implied probability of project development
What's included
This report contains:
Other reports you may be interested in
Asset Report
Lucky Break nickel project
A detailed analysis of the Lucky Break nickel project.
$2,250
Asset Report
Gobe Main
The Gobe Main field is located in the Southern Highlands of PNG. A gas discovery was made in 1993 by Chevron's Gobe-4x.
$3,100
Asset Report
West Erregulla
West Erregulla is an onshore conventional gas field in the Perth Basin.
$3,100
