The Optiva and Shore Capital research notes suggesting 10MW of power would generate annual revenues of $15m, with Capex $55m. Going to be a long time before profits drive the share price. Great story and potential but is going to take maybe 5 years before they get anywhere near 50MW of power on scaled approach using own cash flows. Any acceleration on that would need them to raise cash and add to the already substantial 304m shares issued. Not forgetting the $49m Exploration expenditure already capitalised and sitting on balance sheet which is supposed to be recovered by amortising against future revenues. Then there is the 12.5% Royalty to previous lease holders - another drag on future profits. I don't understand their 'scaled approach' concept actually, especially if $49m exploration / shareholders money has already been spent. Surely it is time for the No 1 most advanced CBM company in Botswana to seize the moment. What can go wrong after all.
TOU Price at posting:
14.5¢ Sentiment: Sell Disclosure: Held
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