I'm getting rid of this stinking pile of cat turd soon - if we revisit their report, you'll notice it takes ~5 years for FCF to breakeven, and remaining 5 years is free cash. The problem is thus:
- their power plant lifespans are ~10ish years before they need to refresh/renew assets, at which point more massive CAPEX - their debt repayments will mean most likely depressed FCF until it's 100% paid, and with only $1m of cash on hand, it'll be depressed for a while - this is not infrastructure where people will need their power supply indefinitely - mines can run out/deplete, hence there's the risk here
I was immature to buy ZEN, and now I've had an opportunity to learn and wisen up, this is a horrible investment. Can't wait to be out. Good riddance!
ZEN Price at posting:
64.0¢ Sentiment: Sell Disclosure: Held
