This from BR Securities (only for 50MW solar farm):
We've assessed Genex's numbers on their solar production and we agree they can generate 145,000 MWh per annum on average, year in year out. Depreciation will be the largest expense, as operating expenses are low. Revenues will be at least 145,000 X $88 = $12.8 million p.a.. Our conservative EBITDA est is $10 million p.a.. Current EV = $155 mill ($55 mill Mkt Cap +
$100 mill debt once solar farm is finished later this year). So that's a 15 X multiple which is fine for a company that will grow as they invest in more farms, but probably a low multiple for a company having government guaranteed revenue.
GNX Price at posting:
24.5¢ Sentiment: Buy Disclosure: Held
