Existing studies?Existing studies for Cliffhead Wind farm or are...

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Lumpster

347 Posts.

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06/03/21

17:08

Post #: 51573477
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Originally posted by ResourceEagle: ↑

I am by default risk-averse and skeptical too Lumpster, but I know best way to address fears is with information. Best not to broadcast your fears until you have this info at hand.

Cash:
Cash from Royal will be $1-1.5M... just over $3M when combined with Pilot's.
Cashflow from the Royal's production profile to supplement this

Cost profile:
They are building off existing studies - minimal study work cost. Study work is relatively inexpensive.
Design phase they may need some additional help and they will partner with majors for development - this is typical in oil and gas, and clearly stated throughout the presentation.
Lingo and Strasser are both extremely experienced on the commercials with major infra & offtakes - so again minimal cost of advisors/lawyers etc.
Government are chucking money at renewables - strong chance of a grant

Therefore I don't see any need for a CR in the near term except for further acquisitions.

Market cap will be circa $30M post merger. I anticipate a little dip post suspension from all the clueless punters taking their money off the table. Then I expect it to run hard as PGY builds a better register.

Its an ambitious set of projects, but so was Fortescue when it started out with its fair share of naysayers and Twiggy-haters from Anaconda's demise.

I am high-conviction on PGY.

That said, Lingo needs to redact down his slideshow - I think its gone over most people's heads.

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Existing studies?

Existing studies for Cliffhead Wind farm or are we talking Hydrogen Plant I am fairly well acquainted with Cliffhead certainly not aware of any detailed studies for conversion to a profitable Wind farm.

Don't forget to subtract the losses Cliffhead (declining field & aging infrastructure) produces from any gains Royal makes.

Everyone's entitled to draw their own conclusions but likening the Fortescue story with PGY, that's a very long bow indeed.

Having said that, I did declare to being a non holder as well as a non believer so therefor shall make no further comments would want to rain on your parade.

Fly high MR Eagle.

PGY Price at posting: 8.2¢ Sentiment: None Disclosure: Not Held
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0 Great analysis

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