cash position, page-2

For anyone just tuning into the geothermal sector, here is an expansion of the previous post with a simple summary of the potential of each listed company:

GDY/O - $34.5M - $334M Mkt Cap - By far the most advanced geothermal exposure. Pursuing the world-leading Cooper Basin HFR project. Temperatures up to 300C with flow rates at a huge 20kg/sec. All the geological requirements for HFR geothermal energy extraction have been demonstrated, and the company is currently drilling the first production scale HFR well using their $32M rig. The main detractor is the distance from market, with at least 500km of transmission infrastructure needed to sell the electrons. Through a 47% stake in Exorka they have access to the Kalina Cycle, which can increase output by up to 30%.

URO - $11.5M - $10M Mkt Cap - Recently acquired a suite of geothermal assets, and still retains a portfolio of uranium assets. New CEO is Lambertus De Graf, the founder of GDY. Approval of the acquisition of the geothermal assets and appointment of De Graf is due on the 16th Oct. Thermal gradients of up to 100C/km are to be confirmed on one of the tenements, and the Limestone coast tenements are ready for commercial scale drilling. Has 30M escrowed shares.

PTR - $8.18M - $44M Mkt Cap - A diversified portfolio of international geothermal assets, though the main focus is on demonstrating the HEWI model, which requires less drilling than HDR/HFR style projects. The lower temperature/lower capex HEWI model will make massive commercial returns (initially from sales to Beverley mine) if flow rates can compensate for the temperature. Also pursuing volcanic and conventional geothermal production, and is rumored to have their eye on China.

TEY/O - $5.80M - $15M Mkt Cap - Pursuing a variety of geothermal strategies including geothermal desalinisation and water pre-heating for coal-fired stations. GELs are mostly focussed around the Lake Torrens area, in the vicinity of the national grid and abundant demand. TEY has demonstrated some encouraging thermal gradients, but have engaged in no significant drilling activities. The company is taking a diversified approach and was recently awarded a $3M REDI grant.

GRK/OA - $3.92M - $21M Mkt Cap - GRK is primarily focused on their Blanche project at Olympic Dam. Electricity demand at the site is set to increase as BHP expands the scope of the project. GRK have identified a thermal gradient that indicates a temperature of 210C may be achievable at 5000m, and previous drill core analysis showed optimal geology at a shallow level. Also of interest is the Ortahaza project in Hungary, though this is yet to be decided as an asset or a liability. Experienced management (including several recent additions) are a definite positive as is the recent expansion into conventional geothermal projects.

GHT - $1.1M - $17M Mkt Cap - Have completed rounds of shallow drilling at the Frome project close to market. Thermal gradients are encouraging, though a very large (and due to be released) overhand of escrowed shares is worrying. Cash position indicates dilution is imminent.



Just a blunt summary really, which I am sure does not represent the view of everyone, but is where I see the sector. GDY, with a vastly superior resource, schedule, and extraction method, will add value to the entire sector if upcoming flow tests demonstrate viability. The more similar the project is to GDY's, the more bankable it will become, having positive effects on the SP and any financing negotiations.