Oblong is correct imho, the only real catalyst for a SP re-rating is positive developments on NEMA and IWULA and the market is indicating that we are some ways off.
If / When granted the SP will "pop like a cherry on prom night" and then it is time to "circle the wagons and horses" because the Indians will attack from the hills - oops sorry wrong continent.
Once the project is derisked with regard to regulatory approvals - the high probability is that RES will be taken over IMHO with significant precedents offering support.
Generally small companies only get to operate these big projects if they can get from concept to production very quickly before the majors get through their internal due diligence processes - this has dragged on too long.
I dont envisage a major group funding $350m for 20% of new RES equity as the brokers are assuming or for that matter by taking a direct share in the project. Especially when in all likelyhood they can own circa 75% of the project for $1 billion on a full equity basis (260m shares @ $1 + capex $750m) equivalent to $2 per ton of reserve or $0.45 pt resource (75% of gross numbers). Thick seam economics and scaleability of the project is the attraction.
IMHO I dont think there is a 10 bagger in this one, regardless of there being significant value in the SP.
I am accumulating weekly as I dont see many stocks as undervalued, strategically placed as this one subject to
regulatory approvals
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