QUEENSLAND RESOURCES TO PROP ECONOMY

Written on the 16 February 2010

QUEENSLAND RESOURCES TO PROP ECONOMY

QUEENSLAND'S rich resources industry will not disappoint in its expected role of boosting the state economy, but property will continue to cop the brunt of a sluggish recovery.

Hynes Lawyers partner and finance expert Scott Standen, says finance will be better obtained via an improved lending market, as long as there are runs on the board.

“There is no question that the resource industry is the space to be. A number of our listed and unlisted resource clients have secured funding on relatively favourable terms,” says Standen.

“We also have a number of other clients looking at substantial fundraising (circa $200m) and the investment banks are very keen to get involved. I don’t think these clients, who have excellent projects, will have difficulty raising the funds.”

The ASX will also see an influx in newly listing resources companies; however Standen says the recovering market could also be quick to ‘punish’ those that don’t deliver.

“Companies with quality assets or sound businesses can successfully list in 2010 at reasonable prices, but you need to be prepared and you need to do what you say you are going to do,” he says.

“There is definitely a pickup in IPO activity across the board, and particularly in the mining space.”

He says Gold Coast companies could lead the charge.

“We think Icon Energy Limited and Cudeco Limited in the listed mining sector have genuine potential to be star performers,” says Standen.

“In the unlisted area, companies with fantastic products or business models, and those in the infrastructure services and mining services sectors will do well. We think there will be quite a number of quality companies listing this year.”

Standen agrees with finance commentators nationwide who unanimously tip property developers to continue to struggle in the recovering economy. The Gold Coast has a number of developers hanging by a thread and unless assets are offloaded, consequences could be dire.

“I certainly do not see a widespread crumbling of businesses. I think banks have been prepared to nurse businesses through and for the most part, I expect this will continue,” he says.

“The banks will of course lose patience with some companies, but we are expecting an improvement to trading conditions in 2010.”


Latest News

RFG TO BUILD GLOBAL HQ ON GOLD COAST

RETAIL Food Group (ASX:RFG) has snapped up the old Gold Coast Bulletin building, confirming it will transform the ...

EUREKA FINISHES FY16 WITH 12 ACQUISITIONS

EUREKA Group Holdings (ASX:EGH) is capping off a stellar financial year with the acquisition of three Blue Care re...

MILLENNIAL ENTREPRENEURS DO IT DIFFERENT

JANE Lu is known as 'the lazy ceo' on Instagram but she is nothing of this description, besides being at l...

COLLINS FOODS RETURNS TO PROFIT

STRONG sales across KFC stores has pushed Collins Foods (ASX:CKF) back in the black with a full-year profit of $29...

Related News

FROM THE TANK: SHOULD YOU EVER WHACK-A-MOLE?

A FAST-PACED game of whack-a-mole often evolves as a business begins to scale up.

Based on my past experience with...

FROM THE TANK: HOW I PICK TECH COMPANIES

JAMIE Pherous, the founder of Corporate Travel Management (market cap $1.4 billion) said it well at the Brisbane B...

FROM THE TANK: DIVING INTO POLITICS

A DECADE ago I faced an important career decision which could have changed the course of my life. 

Option one...

FROM THE TANK: PEOPLE MATTER MOST

WHAT am I looking for on Shark Tank? In actual fact, I am looking for 'who' rather than 'what'.
...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter