GK, if CXY had an SP of $10, it would have to have a market cap of 7.5 billion plus. To justify this, it would need profits of $500,000,000 for a market average PE of 15.
Its market cap at present is a mere $66million.
IMO when compared to CNX's current $2million contract producing 5MW of power per annum, CXY would need to produce approx 1250MW of power to receive $500million revenue and have full ownership of power supply ( and not all $500million will be profit)...to at least come close to a PE of 15....a very tall order indeed!
Granted, fertilisers etc will create further income streams, but I think the greatest impotus for advances in the sp will be a government mandate for UCG over rival coal energy producers. It is my belief that this must happen, simply given the economic and environmental benefits.
I must say that I have been a little impatient with the sp's of UCG producers, but none are producing an income!
I have learnt a great deal from other posters and believe that the CXY, CNX and LNC sp's will all advance extremely well with time, and eventually regulatory approvals and mandates will skyrocket UCG, but for now UCG technology must convince even the greatest skeptics.
As SSkim would say, I await with patience the arising!
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