Huge drop in value - Mining/Gas/Ag town - what to do??

'yes we'll support the region 110% governments allows mass development & R&D & rightly so, but once up & running resource companies dictate terms when the market is on a feline by ruling 100% camp accomodation only if u are working for them pulling all there workers & families out of the towns it has a real knock on effect. Governments both local & state have an obligation to make sure resource companies are doing the right thing & putting back into the communities that they sometimes rio apart.'

I agree with you. Government believed that by allowing big companies into mining towns, they were doing the towns a favour. Mining companies don't give a hoot about the town and it's people; they're there only to make a profit. Problems ensue. Governments then realise when it's too late and the damage has been done. I wish you luck. If the town ahs other things going for it--industry, tourism, trade, primary industry, it will pick itself up.

 

We want to keep investing in all sorts of property, losses can be accepted if you know you can make up for them at a later date. Just trying to work out the difference between on going holding costs v selling at a loss. Either way it's a bitter pill but not the end of the world.

 

You would be better placed than us on this forum to make the determination of hbolding (and incurring holding costs ) vs selling at a loss and the extent of the loss.
The market is in surat basin is looking bleak and likely more to fall on the bqck of oil/gas spot intl prices and a good wait time till any substantial increase in prices.

 

Sorry to hear your bad fortune.

I'm very close to the industry in the Surat Basin. The heat has really come out of the industry. All the big players have reduced significantly since the boom peak in 2012/2013 and one of them didn't even go ahead with their project. There are minor projects, minor in comparison to peak times, still going ahead. This is expected to dry up further this year as operations phase is now truely underway.
Probably a good time to cut and run.

 

Oil prices are close to reaching its long term support. IMO - and I could be wrong - but we should see a market low in the next couple of months or so. If you can hold on, try to do so. Even if it means perhaps offering cheaper rent on a shorter lease maybe.

 

Good response @MBO ... you'll find a way through it. Keep on looking. You'll learn a lot from this experience.

 

@MBO
You might be interested to know that in June 2015 the WA Legislative Assembly released it’s final report entitled “The impact of FIFO work practices on mental health”. This followed community concerns in relation to the suicide of 9 FIFO workers within a 12 month period in that state. Serious stuff.
Now I know Miles and the Surat Basin is a separate situation to WA but you could take a lot from those findings and recommendations and relate them to your situation. For instance, here is a brief extract from the WA report :

“Finding 41 Page 135
Where possible, FIFO workers should be encouraged and enabled to engage with the local host community. This has benefits for the mental health of workers, and for the local community.
Recommendation 27 Page 135
Where possible, FIFO workers should be encouraged and enabled to engage with the local host community.
Recommendation 28 Page 135
Mining companies should engage with local host communities to ensure that the placement of accommodation facilities brings benefits to local communities, as well as benefits to the mental health of workers.
Recommendation 29 Page 136
That the Department of State Development investigate mechanisms to encourage resource companies to invest in providing workers the opportunity to reside in local communities in order to improve mental health.”

The report considered submissions from credible organisations such as Beyond Blue and others so this issue is a complex matter that has bubbled to the fore in the west. Suggest you have a good read.

There are many investors and private accommodation providers in the SB feeling the pinch as result of the corporate decisions you mention which actually do ‘change the goal posts’. It’s these that really stick in the craw, rather than just the adverse effects of economic cycles which you rightly express that investors willingly take their chance on.
If you felt strongly on the issue I would make written and personal representations to the Miles Chamber of Commerce, Western Downs Council, local State and Federal members, as well as Bob Katter and Barnaby Joyce. There is no doubt that some of the major resource industry players provide great economic benefits to your area but they will pull stunts like this whenever they think they can get away with it, to save shareholders some coin at the expense of local communities – so present the facts and make your voice heard I say.

 

Irrelevant. Company directors must act in the best interests of the company. Not the local community, the media, or you.

 

sorry to hear about your losses mate very crap news

I do have a answer to your string question , how long is a piece of string ?
double its folded length

 

Key word.
It's not always possible when the work area/mine is out of town. The guys are flown and bussed in, so they don't have a car to just cruise into town

 

Buying and investing in regional areas which have a jobs base built upon and depending on, one maybe two areas of employment, for example mining, tourism is and always has been risky.

It was one of the first things which was taught to me when I started in the building game. 1974.
Regional areas are very sensitive and susceptible to economic downturns in other countries, more so than capital cities. Only, don't buy a Unit or Townhouse in Brisbane, there are way, way too many being built. Go out a bit, buy a block with a house.

 

Clearly THX you've never been involved with or know anything about regional areas. That's the problem with society these days there's one generation to many separated from the bush. Being a share holder I know that companies need to do the best by there investors, but also there happy to reap the financial rewards pulling a product out of the ground & not giving back to the region where they remove it from.'they do have an obligation to support local businesses & if they can't meet those requirements then it should be given to someone who can. Happened in the early days of mining, no reason why it still can't today. Thanks Foxy ***** for your comments & info.

 

Cut your losses and run.

It's a 'sunk' loss. Sitting around doesn't mean it'll go up one day. If you form a view that there are better opportunities elsewhere, you should sell to pursue them now. Sitting around means you lose money on your old investment, and miss out on new ways to make money.

 

Wrong.They employ people and pay royalties. They have no obligation to support local businesses. They need to do their best for shareholders by law. It is irrelevant whether it is regional or not.

 

They have no obligation, but to keep the peace and look less like an evil mining company they put money back into the community (PR game) but also to keep/draw workers and their families to the area

 

T

Thats ur opinion & it accounts for very THX. 150 farms were bought out in one region & a mine never went ahead. Those families are gone forever & there's little community left there, but I shouldn't bother u with details like that as clearly u don't give a toss. Nor do I about ur opinion. From being in the industry I also know they pay bugger all royalties as there value added off sure on paper to pay less tax within Australia.

 

T

hey should still be made accountable Bob, regardless of what they can get away with. We are all held accountable one way or another they should be no different. We're all getting off the subject, we have no control other than a small voice of what multi nationals do or get away with. I was simply asking for anyone that's been in the same or similar situations as to what they did or an recommend doing to trade out of it. I've looked at many different angles & was seeing if there was something out there that I may not have considered.

 

I know what ur saying Omnidragon & I don't disagree with u as I've see some very good opportunities where I could have made some good money elsewhere but I owe 100% & I'd be taking a $150-200K hit to get out, that's a lot to trade back, could be done quickly on the right deals but it may also take a long time also. Needless to say in the long run I would have learnt more than I've lost.

 

Thanks Tavinium, how close to the industry are you? I know it's quite sick at the moment but I'm hearing mixed reports as long term recoveries. Lot of options around & not a lot of facts. The main concern is the price of oil at present & oil price wars which are pricing gas right out of the market at present.

 

It's not an opinion, it's fact. Ok, so what? I assume everyone was paid for their land, royalties were paid etc, they met all obligations. You just don't like it, tough luck.