Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), & CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

5 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he's one of the finest property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written, yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data & charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, author of the New York Times bestsellers 'End Game' & 'Code Red'.

"The level of detail in Pete's work is superlative across all of Australia's housing markets" - Grant Williams, co-founder RealVision - where world class experts share their thoughts on economics & finance - author of Things That Make You Go Hmmm, one of the world's most popular & widely-read financial publications.

"Wargent is a bald-faced realty foghorn" - David Llewellyn-Smith, 'MacroBusiness'.

Friday, 30 December 2016

Mineral exploration steadies (WA goldfields)

Permanently lower plateau...

Having declined by fully two thirds from the March 2012 quarter peak, mineral exploration expenditure (ex-petroleum) increased by 0.6 per cent in Q3 2016.

This is some welcome good news for Western Australia, being the state that has born the brunt of the decline, with exploration spend trending up for 12 months in WA and the state notching a 1.9 per cent increase in expenditure in the third quarter of the calendar year.

Although it's tempting to believe that the reason for the rebound must be the spiralling price of coal and to a lesser extent iron ore in 2016, in reality it was exploration in the WA goldifelds that drove the rebound.

The statistics for metres drilled show that the recent improvement was driven by new rather than existing deposits, with commitments having been made earlier in the year to expand the program at Australia's largest undeveloped gold deposit to the east of Kalgoorlie and Laverton, the Yamarna Belt.

Coal exploration did jump significantly in the September quarter, but truthfully the numbers are volatile and in rolling annual terms total expenditure for the mineral remains well down. 

If mineral exploration is going to hold up or improve then it will need to be driven by (a) the Adani Carmichael project getting up, and (b) iron ore drilling programs ramping up to maintain production volumes as existing reserves are depleted.