LGI generates most of it's income from electricity and bio gas (and carbon credits), with about $30m in revenue and $6.7 million in net profit last financial year.
They currently have a market cap of roughly $250 million.
DEL had a net profit of $4.8 million last financial year and has a market cap of $22 million. But most of our revenue was from construction.
Definitely a good place to benchmark (currently putting a spreadsheet together to estimate what our revenue should look like when we can get all the sites up and running, based on LGI numbers). The construction revenue in the meantime is a great way to increase cash and pay off the debt that will be borrowed from Tanarra.
Plus there is plenty of room for both companies, Arena says the following:
"Considering the current average size of biogas units in Australia, this could represent up to 90,000 biogas units"
Exciting opportunity we find here. I think Delorean's estimate of a 2028 market cap of $300 million is quite feasible and i think the market cap should probably be at least $50 million right now considering the risks.
The Prospectus provides good detail on the estimates of electricity generation, LGCs, etc.
Wish they could provide a more up to date analysis of each site.
Not advice DYOR
DEL Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
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