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21.0¢ talon energy ltd

Thanks mate, very much appreciate your input

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Firesheer

203 Posts.

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26/04/22

10:57

Post #: 61015091
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Originally posted by invertedva: ↑

Hard to say with too much accuracy prior to W-5 reserves and W-6 results.
But probably the best way to estimate this is by using the fact that they are proceeding to FEED with the gas processing plant, which will have a design capacity of 36 TJ/day (incorporating both W-5 and 6).

Spot price is ~$5.50 per GJ in WA (according to recent Strike announcement) with significant upside.
36TJ/day = 36000 GJ/day.
So, $5.50 * 36000 * 365 * .45 (TPD's share) gives you a revenue stream of around $33 million a year.
Who knows what the profit rate will be, but assuming 50%, you get a profit of around $16.5 per year. Around a PE of 4, ignoring all TPD's other assets.
Sure there is execution risk as well, but given Strike are driving this, I'm pretty sure we will see income from this sooner rather than later. Also, having a stable income stream will make everything else far easier to finance too (i.e. like the massive gas project in Mongolia).

Feel like this might be a good time to load up, given today is a major de-risking event.

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Thanks mate, very much appreciate your input

TPD Price at posting: 1.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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