The optics here aren't great, but considering where the share price is vs fair value - I remain comfortable with my DEL position.
If we just consider the projects underway within the Infrastructure division, based on the by-project capex and IRR, we're looking at a NPV of circa $170M. If we assume these projects are funded via external equity with 50:50 split between Delorean and external partner(s), then Delorean's share of NPV drops to $85M. That's still >2x vs today's market cap.
Of course, we also have an EBITDA positive Energy Retail division plus the 'real option' of Brickworks roll-out plus Yarra Valley contract.
Intrinsic value is multiples of current share price.
DEL Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
