Long-time members of The Natural Resources Hub (TNRH®) know that my favorite natural resource play is the low-cost, growth-potent producers run by entrepreneurial management. These prized qualities come together in a formula as follows EBIT = {[Realized commodity price] - [All-in costs]} X {1 + [Growth rate]}.
- The land package that hosts the concerned assets must be so richly endowed that reserves can be found, appraised, and developed easily and inexpensively. Once developed, the production can be sustained cheaply and operated at low costs, which means the necessary infrastructure has