The Genex website says the CapEx for the total project is $115.4M. Depreciation rates based on similar projects (eg, Infigen) are between 25 to 30 years (I have a memory that the maximum allowed period is 30 years). Regardless, to be conservative, I've used 25 years. Also, I expect that the full $115M will not be depreciable, but to be conservative again, I take the whole amount. Therefore, using straight line depreciation: $155.4 / 25 = $4.6M per annum.
If ongoing maintenance were to be capitalised (and not included in the reported EBITDA projection), depreciation would be higher.
Open to review.
GNX Price at posting:
26.0¢ Sentiment: Hold Disclosure: Held
