Can’t believe I missed this Eureka Report interview of Genex CEO James Harding from a year ago with Alan Kohler. The text of the interview is on the web page (search "eurekareport genex harding" if the URL I inserted is blocked), and the associated podcast (36 minutes) is worth a listen.
disallowed link/investment-news/genex-builds-energy-storage-for-future-power/151180
In terms of future valuation, I’ve never heard anyone from Genex say what they think the company would be worth once the 4 projects are all operational (the 2 running 50MW solar farms, Bouldercombe battery and the pumped hydro. Doesn’t include the Wind project or Bulli). Except James does infer a minimum valuation in this interview.
AK: Do you and your investors in your board think that what you’re building really is a bunch of assets to be sold to an infrastructure investment fund at some point? … You said you’ll have assets worth a billion dollars, do you mean that’s a market value of the assets, do you think? Or cost?
JH: We sort of see where we are when we get to 2025, when this growth phase is complete and we’ll obviously expect to have a strong pipeline of development projects in place at that time…… I mentioned that as the cost that we will have invested in those assets. But, yes, we certainly see that the EV of the company at that stage will be considerably north of that. I won’t predict where it’s going to be, that depends on the multiples that you see elsewhere in the sector, but we’d see certainly double that depending on which metric we use by the time we complete the hydro and the battery project and have four operating renewable energy and storage projects.
So James is inferring at least an EV of $2billion. If the company is currently valued at $200m with an EV of $1b and loans of $800m, does that infer that at an EV of $2b the company will be valued at $1.2b? -> so share price 5-6 times todays share price? (I'm a novice in these sorts of calculations!)
