FHE 6.90% 13.5¢ frontier energy limited

I asked My AI the following: "Once FHE Stage One has been...

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  1. 10,633 Posts.
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    I asked My AI the following:
    "Once FHE Stage One has been completed, what will the expected Market Cap be at that time"
    AI responded with:
    "
    The expected market capitalization of Frontier Energy (ASX: FHE) after the completion of Stage One of the Waroona Renewable Energy Project will depend on several factors, including revenue projections, market conditions, and investor sentiment. Here's an overview of key expectations:
    1. Revenue Projections: Frontier Energy has estimated that Stage One could generate AUD 27 million annually from reserve capacity payments. Additional revenue could come from energy sales, depending on power purchase agreements (PPAs) and market prices for electricity generated by solar and battery systems.
    2. Profitability and Multiples: Market capitalization is often a function of earnings (or projected earnings) multiplied by an industry price-to-earnings (P/E) ratio. If the Waroona project delivers as expected, Frontier could become more profitable, attracting higher valuations.
    3. Industry Comparisons: Companies in the renewable energy sector can trade at higher multiples due to future growth potential. If Frontier achieves success with Stage One, its valuation may align with comparable renewable energy companies.
    Possible Market Cap Range

    • Conservative Scenario: Based on a simple revenue-to-market cap ratio and modest earnings growth, Frontier's market cap could increase to AUD 250-300 million post-completion.
    • Optimistic Scenario: If the Waroona project outperforms, or if Frontier Energy secures favorable energy contracts, the market cap could reach AUD 400-500 million, depending on investor enthusiasm and overall market conditions for renewables.
    Ultimately, these projections will depend on performance, scalability, and execution of further phases."

    So Conservatively at current MC of $113 M we have at least 2X from here !
 
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