Wow - so the Amro report says that after they pass proof of concept and build their demo power plant, GDY will only be worth around $2.50...this is a lot less than I imagined. I was guessing that if they had proved a viable alternative energy source with all the benefits, that we would see $5 or so. Wasn't there talk that they would be able to power the whole of Australia for 20 years or something?
So basically, if everything goes extremely well, we make 50% by the end of the year. However, my feeling is if anything goes wrong (like somehow they jam up the hole again, the share will go back to 50c).
I suppose I am reassessing the risk / reward ratio after doubling my GDY holding on Thursday.
The valuation is based on GDY farming 500MW of reserves. What is the likelihood that they will find more than this? I was thinking if they have proof of concept, that the reserves would be vast.
RNE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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