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Brett M H

197 Posts.

18

15/04/18

12:05

Post #: 32463199
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Originally posted by afterlife ↑

As for GG we are all waiting for some verbal expansion. There is time n quantity of selling restriction on the amount of shares the three main holders ( from mangmnt can sell) As for the PPA, ZEN has in place with their BOO customer a "take or pay" contract, which I understand the customer has to pay a certain minimum fee for the duration of the contract regardless of the usage This guarantees income if the mine/ customer has temporarily shut operation down or a mine closure. Or even if consumption has dropped significantly. The only problem arises in liquidation. Than ZEN will claim the Assets. What i like in the company is the fact that they can integrate few sources of energy in one Energy Plant according to what's best n available scenario. Australia thrives on the mining industry and with such vast land thats is of the main grid we r bound to see more n more projects , communities, and industrial /commercial sites becoming independent n self reliant . Reliable source of energy is paramount now days. Imagine a hospital with a power failure with out generators in standby. For the remote mining industry there are no other options Zen can charge higher prices due to the short contract n remoteness of mine The BOO model provides an excellent income and guarantee cash flow against a drop in new contracts. So when new downturn in mining reoccurred there's a steady moat to protect. The BOO model has turned ZEN from a contractor to an Energy supplier n a financial company The only missing piece for my understanding is the net Annual ROE for the Energy supply income segment. After all costs of depreciation, finance, operation ,material,employees n head office have been calculated. The earnings from the Energy supply n maintenance is the foundation n backbone of the company ( for me) , and for as long as we can add to the MW sold at healthy margins the larger we get

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Thanks for the replies - it is very much appreciated!!

Would be good to know what happened with GG at some point, and hopefully ZEN can keep winning some highly profitable contracts going forward.

Last edited by Brett M H: 15/04/18

ZEN Price at posting: 73.5¢ Sentiment: Buy Disclosure: Held
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Thanks for the replies - it is very much appreciated!! Would be...

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