Ann: ReNu signs Sale and Purchase Agreement for Solar Project, page-11

I did some calculations a while ago on how far RNE could leverage their cash on hand depending on their loan ratio. And while we don’t know the final LVR, it certainly does appear that a ~60% lend will be the worst case scenario for PV cell instillations.

I thought I’d re-publish the figures so you can get some understanding of just how far they can stretch this cash on hand.

	Column 1
0	60%​
1	$11,710,000.00​
2	$7,026,000.00​
3	$4,215,600.00​
4	$2,529,360.00​
5	$1,517,616.00​
6	$910,569.60​
7	$27,909,145.60​

The above figure are crude, very crude, they don’t take into account interest, overheads, nor the carry forward losses ~$250m etc.

I do however think these figures, and the 12% P.A. return for the Amaroo instillation lets us make an educated guess on what the rate of return a total portfolio of ~$28m in PV cell network will be. It roughly equates to a deal the size of Amaroo once a year, just based on the returns of between 10%-12% P.A. And electricity prices aren’t falling any time soon!  

Again, these are crude figures, very crude. It’s just my estimates so I can try and put some type of a value on RNE.