KPO looking as good as it has for a long time.
I suspect there is so much demand for data centre compatible projects it is the equivalent of a house auction with about 5 keen bidders.
KPO should sell one of their non-Crusoe projects off to the highest bidder which will give them a strong balance sheet and enable them to proceed with the rest. Selling Saddle Hills is also a non-brainer for a data centre that wants to offset their energy demand. Its shovel ready.
KPO has huge tax offsets due to years of accumulated losses so they should clean up on a sale.
Selling a single 170MW site for say the mid-point of $200/MW would equate to $34M. Throw in Saddle Hills and round it up to $50M CAD. Given that this is probably 10% of their portfolio, a single sale will all of a sudden put a real floor valuation on the company. Even if you dont extrapolate that valuation straight to $500M (10x$50M), there is a hell of a long way between the current lowly $21M AUD MC and anything near that.
Mark my words, as soon as a single sale goes through, the share price should explode with fair value somewhere between about 7c and 21c
IMHO, GL to all holders. Its been a long and tortuous journey but i really think we could be weeks away from a sale
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