In the resources sector there are always times when big projects are being prepared for or are just starting and the overall outcome is still unknown. Just like any business, things can't be rushed if they are to be done right.
Investors interested in this sector at least have time on their side. They can observe the developments and can adjust their positions as the news comes out over time.
Here are three companies that have projects which could really change their fortunes if successful.
Independence Group NL (ASX: IGO) is a mining exploration company that opened the Tropicana gold mine in WA together with AngloGold Ashanti Limited (ASX: AGG). It holds a 30% stake in what could become the fourth largest gold producing mine in the country.
The all-in sustaining cost of the mine's first quarter of production was A$687/oz and the average realised sale price was A$1,372/oz. Its portion of the gold sold in the December quarter was 24,740oz.
In its FY2014 first half, revenue was up 36.5% and net profit gained 30.3% on the previous corresponding period to $21.5 million. Interim dividend rose from one cent per share to three cps.
Woodside Petroleum Limited (ASX: WPL), the oil and gas developer and producer, released its March quarter results, showing a 5% rise in production and 15.9% gain in revenue. It also signed two new sales agreements with Korea Gas and Japan's Chubu Electric for gas from its Pluto LNG project.
Currently, shareholders are waiting to hear the outcome of its negotiations with the Israeli government about its Leviathan LNG project. If the project can commence, it would make a step-change in earnings and growth.
Its share price stayed between $37 and $40 since July 2013, yet this week set a new 52-week high at $41.72. It is $40.71 now.
Aquila Resources Limited (ASX: AQA) is an exploration and development company with iron ore, coal and manganese project interests. Chinese steelmaker Baosteel, which owns a 19.9% stake in the company, may want to buy a direct stake in the $7.4 billion West Pilbara iron ore project.
Aquila Resources holds 50% of the project, which is estimated to produce about 30 million tonnes per annum (mtpa) when in full production with a mine life of 15 years. Baosteel needs ore supplies for its new giant steel plant, which will start production in 2016.
Foolish takeaway
All three companies are at points where big opportunities may be opening up soon. Of the three, Independence Group may have the shortest waiting time to see the gains as the new gold mine ramps-up production over the next one to three years.
