Spozzie, as always great work. Thank you. Your analysis of the value of Copahue agrees closely with the one by oakeyflat.
If you assume say 1200m shares on issue, then fair value for a 50MW Copahue plant lies between 7.3c and 9.4c. Double that for a 100MW plant etc.. Given some of the uncertainties, a discounted share price is warranted atm, however, prices below 4c are ridiculous IMO. I'm really quite upset that some lucky so-and-so's are getting shares at a significant discount to 2c.
As for the offtake price, figures have been quoted between $100 - $140 per MWh. I have no knowledge of anything that could update those figures.
There are some other unknowns, both positive and negative that could have a material impact on fair value: - Will the offtake partner be required to pay $120/MWh regardless of the spot price of electricity or will EHR have to meet market rates? - Feed in tarrifs? - Tax concessions? - Interest rate on loans from development banks might be lower?
EHR Price at posting:
1.5¢ Sentiment: LT Buy Disclosure: Held
