I need to read up on the $5mil EMC notes origin, but in essence the restructure cost the rest of us some dilution. Not too much but could lead to some dumping once converted at now above 4c rather than 6.
Some purely back of th envelope numbers. Northam will bring in a minimum of $1.2mil revenue at 24,000MWh and $50/MWh (probably will be significantly higher as you can earn big on the peaks). After operating costs 50% of this will flow to CCE. The wholesale price is unlikely to decline so it’s not bad, but still feels like a lot of effort and diversion for $600k-1mil/year yielding asset with probably brutal rates on the finance as its unsecured. Guess we will have to see how quickly and cheaply they can build it (15-20mil?), and what the term sheet looks like for the sale of the 50% equity. Should mean large lumps of cash in Q3.
I’m still unclear on the GIMG model. What are we refinancing post construction? Are we also owning and operating it?
CCE Price at posting:
3.6¢ Sentiment: Hold Disclosure: Held
