The yearly production looks a bit too high.
Vali will be producing around 12TJ a day. Odin may be able to produce 4TJ. So, 16TJ a day in total. MEL owns 25%. So 4TJ net to MEL per day.
The bulk of the operating cost will be the cost of processing the gas by Santos. Unfortunately, we don't know this cost. My guestimate is $4-5 per GJ max. The gas price was much lower in the past and Santos was able to process it and make money. But they may also use their power to squeeze more money out of MEL?
At $5 margin
Profit before tax/depreciation = 365* 4,000GJ *5 = $7.3 million per year for MEL.
At $7.5 margin
Profit before tax/depreciation = $10.95 million per year
The contract price will make a big difference to the profit.
Ann: Trading Halt, page-167
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Mkt cap ! $5.830M | |||
| Open | High | Low | Value | Volume |
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