Ann: Head of Terms to fund $100m bioenergy business development, page-44

Hey @Mystro99 I'm waiting for more news from the company before spending time on projections.

Initially they forecasted 2m EBITDA run rate by end of financial year. My understanding was that would include the 2 bio projects and 4 SCA shopping centres and previously purchased Amaroo centre in Canberra.

There were / are other possible projects that were flagged as being investigated though my understanding was that they wouldn't have been able to finalise them in time to have been calculated in that end of financial year run rate guidance.

However, I would hazard a guess that the 2m run rate guidance was exclusive of corporate costs so in essence I anticipated them to have been cash flow neutral run rate off the projects I mentioned. However, happy to debate that as I'm just making an assumption here on this as it's not clear how they could say the bio projects are now cash flow positive in a recent announcement (would that have included a share of corporate costs?).

Now that they may sell a stake in their bio projects that will unlock a significant amount of capital for RNE to invest their 30% share of future bio projects while they charge project management and implementation fees. So RNE wouldn't be a utility in this instance, they would also be an engineering / project management company as 70% of the bio projects costs would be paid by our investor partner and should be a profit making business for us, or at least subsidise our own costs on the projects.

Given the accumulated losses there is the potential for RNE to also make a utility style play with additional debt though that would require additional funds / dilution to get us there. Shareholders may tip in though, they've been very supportive of previous SPP. Once this gets to cash flow neutral, a SPP raise for a utility style play (obviously small scale asset purchases like the Amaroo shopping centre) to take advantage of the accumulated tax losses would be attractive, at least to me, vs keeping money in the bank.