From the prospectus , News articles and Management interviews
DELOREAN CORPORATION LIMITED
Mcap $35.9 million
Cash $17.0 million
EV $18.9 million
IPO PRICE 20c
Delorean Corporation Limited is a vertically integrated renewable energy generation and retail company, building a portfolio of bioenergy generation assets, leading bioenergy in Australia and New Zealand.
- Recognised Australian industry leader in bioenergy project development and generation.
- Established profitable energy retailer business with national energy market (NEM) licences.
- Proven history of profitable, organically funded growth from retained earnings.
- Significant pipeline of shovel ready bioenergy projects with the first to commence post-IPO, transitioning the company into owner, operator and generator of clean energy.
- Strong industry tailwinds behind renewable energy production and eliminating organic waste from landfill.
- Experienced, founder-led board and management team with a track record of growth and value creation
Delorean got 31.2 Mil Revenues , 3.6 Mil Ebidta and 2.5 mil Mpat for FY20
Bioenergy supported by strong industry tailwinds in Australia
2019 National Waste Policy to “halve the amount of organic waste sent to landfill by 2030”, underpinned by increasing state based landfill levies.
Strong Australian Government incentives for renewable energy, carbon credits grants, financial assistance (ie. ARENA and CEFC).
Social corporate responsibility – Australia’s big 4 banks have all joined RE100 and announced a commitment to 100% clean energy by 2025.The investment opportunity for new bioenergy and waste-to-energy infrastructure in Australia is estimated at $3.5 to $5.0 billion.
Experienced Founder led board and management team with a track record for value creation
Founded by Executive Directors Hamish Jolly and Joe Oliver who were previously 100% shareholders, are leaders in the Australian bioenergy industry.
NED Steve Gostlow was previously MD of Tox Free Solutions for 16 years, driving significant shareholder returns from $0.20 to $3.40 per share (+$670m takeover by Cleanaway).
NED David McArthur is a Chartered Accountant with over 30 years of experience.
Most exiting part about Delorean Corporation is their Pipeline of projects
Delorean Energy SA One Project
- Stage 1 - 60,000 tpa bioenergy anaerobic digestion facility
- First green gas to mains project in Australia (150TJ biomethane to mains via Origin Energy/AGIG) surplus energy exported to the electricity grid
- 70% owned by Clean Peak Energy subject to FID
- Clawback provisions for recovery of 100% ownership by Delorean Energy if CleanPeak Energy doesn’t complete FID
- Project Stage 1 is shovel ready pending FID
- Unlevered Project IRR Range: 10 -13%
Delorean Energy Victoria One Project - 40,000 tpa bioenergy anaerobic digestion facility
- 1.2MW capacity generation (electricity to grid option for behind the meter)
- Exclusive option to acquire 90% of project subject to FID
- Delorean Energy to complete build and commissioning of project
- Project is shovel ready pending FID
- Unlevered Project IRR Range: 12 – 16%
Delorean Energy Queensland One Project- 80,000 tpa bioenergy anaerobic digestion facility.
- 3.0MW generation capacity (electricity to grid/behind the meter)
- 100% owned by Delorean Energy subject to FID
- Project is under development and is expected to be ready for FID in October 2021.
- Unlevered Project IRR Range: 12 – 17%
Delorean Energy Victoria Two Project- 50,000tpa bioenergy anaerobic digestion facility
- 2.0MW capacity generation (electricity to grid/behind the meter)
- Project development co-funded by Sustainability Victoria
- Delorean Energy to complete build and commissioning of project.
- Project is under development and expected to be ready for FID in September 2021.
- Unlevered Project IRR Range: 1 4 - 1 7%
Portfolio of first 4 assets $75.6m.
Bioenergy assets generate two incomes: (1) fees to accept organic waste; (2) sale of energy. (annuity-based income streams, average project - 50/50 income derive from waste disposal and energy sales)
The longer term strategy is to develop and own a $200m portfolio of bioenergy assets with a view to establishing a managed
renewable energy infrastructure fund
Conclusion :
Delorean is a classic mix of Right company .. Listing at the right time ... run by right people ...getting listed at the right valuations
As we all know Renewable energy sector got massive tailwinds and Delorean is already doing 31 mil Revenues making Npat of 2.6 mil
At 20c It is only priced at Mcap of $35.9 million . They will have Cash of $17.0 million and EV of $18.9 million.
IMO it can easily trade at 30 to 40 times Ebidta means 60c to 80c share price in short term
And in coming years if they will execute their project development plans successfully, it can become a massive winner and a potential take over target.
It should trade between 40c to 50c on listing and I would be a buyer if it will trade under 40c
GLTAH
DYOR
