Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), and 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 is 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 and charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, and author of the New York Times bestsellers 'End Game' and '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 of the world's most popular & widely-read financial publications.

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

Saturday, 22 March 2014

Gina savours a victory over the naysayers

After years of carping from commentators, a major win for Gina Rinehart as financing is secured for the colossal $10 billion Roy Hill iron ore project, including through Australia's major banks.

Rinehart's father Lang Hangcock was initially famous for having discovered the world's largest iron ore deposit in 1952, having been forced by inclement weather to fly at low altitude on a flight to Perth.

The US$7.2 billion (A$7.9 billion) debt package is said to be one of the greatest ever secured for a resources project that is based upon land.

Formerly listed as the world's richest woman, Forbes now estimates Rinehart to worth around US$17 billion.

The mine is expected to begin churning out iron ore by 2016 and will ramp up production to a monstrous 55 million tonnes per annum by 2018. 

The iron ore price is currently hovering around US$110/tonne, helped further by an Aussie dollar that has receded to around 90 cents from above parity. 

Clearly this level of new supply will add to downward pressure to the commodity price, but the sheer scale of the project should allow it to be a low-cost producer at around $80/tonne.

Sydney Morning Herald reported.

"Gina Rinehart's lifelong ambition to fulfil the dream she shared with her father Lang Hancock to build their own iron ore mine became a reality on Thursday night when she signed a $US7.2 billion ($7.9 billion) debt package to bankroll the Roy Hill project.

It was a momentous occasion and marks almost 62 years since Lang Hancock discovered one of the biggest iron ore deposits in the world, then spent the rest of his life trying to convert it into a mine.

In a media pack released on Friday, no doubt driven by Ms Rinehart, a collage of newspaper headlines with negative connotations that she wouldn't realise Roy Hill were put on show to rub the naysayers' noses in it."