jabiru anns, page-3

Hi Kaybe,

Got this from another poster on another site hope it helps

Globally, the demand for faster speeds and bigger content has impacted satellite bandwidth and services and the number of VSAT sites required. (VSAT is the satellite antenna and
modem that transmits and receives satellite signals).

World wide satellite service revenue grew by 17% over 2008 to US$84bn. The Australian VSAT market is estimated to be worth over $600m. Excluding broadcasting, enterprise, government, defence and consumer sectors make up the majority of these revenues.

A company set to benefit from these trends is NewSat (ASX:NWT). NWT is Australia?s largest independently operated Satellite Communications Company. NWT owns and operates two first class teleport facilities,one located in Perth and the other in Adelaide. NWT acquired these teleports from SES Newskies Satellites in 2005 for $14.2m. These assets have allowed NWT to provide government, corporations, and private enterprise with access to an increasingly large and diverse range of satellites.
Today, NWT is linked to 13 satellites which allows it to reach 75% of the globe including Australia, Asia, the Middle East, Africa, and across the Indian Ocean extending into Europe.

Since being acquired, the teleports have been upgraded and are now considered world class assets. The teleports now require little capex over the next decade and these teleports remain the key to NWTs revenues, and given their military accreditation, locations and planning permissions required, represent a significant barrier to other parties wishing to enter the Teleport market.

The majority of NWT?s contracts are with oil & gas companies, mining companies, government agencies and military and defense forces from Australia and the US.

if we believe that more and more remote mining sites will be built (mining boom) and extra oil rigs will be deployed across the vast oceans (oil boom), than more of NWT?s services will be required to provide telecommunication services to these isolated locations. In addition military operations by the US and Australia will require NWT?s services in order to maintain low churn rates of soldiers and to provide critical mission communication services.

Recently NWT secured one of the hottest ?realestate? assets of the space world and that is multiple satellite slots. Imagine these as valuable car spaces in the center of the city CBD, where there are limited car spaces available!

NWT CEO Adrian Ballintine, has recently received the most prestigious award in his industry at the 2011 world teleport awards. This was despite fierce competition from 1700 other satellite operators around the world and was congratulated by his peers in securing these ?Hot Commodity? orbital slots.

Looking at the future, NWT prospects lie in its successful future launch of its 2 satellites, Jabiru1 & 2 (Jabiru1 expected to launch 2014). The satellites will expand the company?s market share and vertically integrate the company by giving NWT complete ownership of the satellite communications supply chain. Jabiru will become a wholesaler of satellite transponder capacity, with NWT retaining its role as a teleport operator, distributor and a retailer in some specialised markets. The cost of the project is expected to be part debt and equity funded. The cost will be dependent on the size of the satellite. At this stage, it is estimated that the project will cost between $300-400m. Future revenues can be in excess of $1bn!

At this stage NWT is an emerging company recently achieving positive cash flows and a small negligible profit. As its costs are fixed there is high operating leverage in the business as it secures more and more contracts. currently its Valuable value is close to zero but will rise substantially in the future.

Hopefully with the help of a 1 for 100 share consolidation to remove some of the decimal points on my calculator, and barring any substantial highly dilutive future capital raising, i believe this company?s prospects are extremely bright.

One to watch closely.

(on a side note: i highly recommend reading George Friedman?s book ?the next 100 years? detailing the future need for space satellites which will be utilized to engage in wars and provide energy to our planet.)


Last Close Price When Posted: $0.009 | Last Close Price: $0.008 | Percent Change Since Posted: Down 11.11%


Cheers,
t2s