set to go into orbit, page-7

Sorry, Phil, missed your post last week.

Yes, Quadrant subsidiary Bareena Holdings Pty Ltd did acquire its holding “on the cheap” as you say. And yes, the lifespan of the satellites was a consideration I explored as well.

Turns out, there was a good deal of ‘over-engineering’ went into the design of the hardware – no one team wanting to be responsible for the early demise of the system.

The designers of the propulsion sub-system, for example, sent aloft 30kg of fuel per satellite. Given that maintaining orbits requires only between 1-1.5Kg of fuel per year, you can gauge the redundancy built into system. This is true of all the sub-systems, I am told.

A report by the respected Aerospace Corp, a firm often used by the US government for military and other work, gave the expected lifespan as between 2012 and 2014.

Besides the 66 Boeing-maintained satellites already in orbit, Iridium has, I believe, 13 spares.

Meanwhile, Iridium for the first time reported “break even” for the September quarter last year.

With two other divisions set to make profits this year, Quadrant looks to me on a risk/reward basis at 4c, to have the goods. Unlocking the value of the Iridium asset provides the blue sky - and that is very deep blue sky!

I still say it is one to keep your eye on.