One of the most difficult things about investing in CCE is working out the revenues. They burn money at a rapid rate (MO salary is ludicrous). Last year I tried to work out the revenues from potential electricity sales from our project and at that time came up with around 4.5 million. In that quarter we had burnt through 7 million so it was a long way off. However since then there has been some significant contracts awarded.
I remember calculating the northam project as producing revenue of around 1.4 million a year. The mungari solar farm is around 4 times that so if it went ahead you could estimate it to produce revenues of 5.6 million. Those two projects alone get us up to around 7 million in revenues. Along with all other projects we could be looking at revenues from electricity alone at around 10 million. Now that doesn't take into account maintenance, project fees etc etc.
It's still a way off a profit HOWEVER in the quarterly (I can't remember which one) CCE stated that they had 170 million dollars worth of project in the pipeline. Do the math and there must be a few more of these announcements to come. If so a profit is not far off maybe first half 2020?
CCE Price at posting:
3.8¢ Sentiment: Buy Disclosure: Held
