The company is a very attractive proposition in every aspect in my opinion. Its product (electricity), is in demand, the supply of which is problematic and forecast (in the short-term at least), to be very problematic. It is favoured by all sides of politics, all levels of government, the local community, energy regulators, heck even the Chinese have a piece of the action (the hydro guys that own a chunk). The technology is extremely low risk and proven. To boot, in my opinion, the stock is undervalued too.
They have issued fixed price contracts for the build (of solar 1) which is extremely sensible in my opinion. It may be slightly more costly that way, but it protects against cost over-runs and provides incentive for the builders to complete on time. There may even be penalty clauses for late deliver, I don't know.
Another thing I've been thinking about is that the government are facing headaches as to how to deal with the energy crises. It is very complex and proper, complete solutions will take years. However, they may be able to help by expediting existing projects close to completion (not just GNX). For example, GNX solar 1 is due for practical completion Q1 next year, which could be the end of March - after the summer peak. We could see a scenario where the Govt say "how much to bring it forward a couple of months?" Of course, this money would go to the builders in terms of overtime etc, but GNX would have completion and full revenues earlier (yes I know some revenues will trickle through Q4 17). I know this particular project is 'only' 50MW, but there would be others, I'd imagine, that would be in a similar boat. This is just speculative and most likely wouldn't happen, but when you think about it, the Govt paying to expedite a number of these projects could be the most cost effective way of maintaining the electricity supply next summer.
GNX Price at posting:
25.5¢ Sentiment: Buy Disclosure: Held
