Originally posted by Bakmaam90
One Question please Hanabi.
How much of the 5.23M loss in 2018 was attributed to payments for equipment that have now been paid for and will spend the next 12 months doing what they were paid for to do... make money?
I'm not arguing and I'm trying not to be guilty of blind faith, but for some reason I can see a brighter future.
I know I don't quote TA or FA because I don't know how to do that. ASX jargon and Charts are all double Dutch to me.
But I can see in principle how this can work.
What you say is true but at some point you need to spend money to make money.
The last 11 years includes the GDY days and the false hope we were all given for a Geothermal Tech that wasn't proven. I know because I was there in 2003 when we spud Habenero 1 with this dream of changing the world with .... well anyway no need go on about that. But I was drawn into GDY/RNE way back then... so they owe me!
This time we have a working, revenue producing Goulburn that has been recognized as successful, so yeah I agree with you but I don't clear.png
Mornin' BM,
How much of the 5.23M loss in 2018 was attributed to payments for equipment that have now been paid for and will spend the next 12 months doing what they were paid for to do... make money?
According to the report, very little. Looks to be, at most, around $1.5m, although it is not easy to determine from the reported figures which are an aggregate of costs. So if we wear our rose-coloured glasses and assume a 10% return on that $1.5m we're looking at an incremental $150k/yr increase in EBITDA. Compare that to $3m+ per year in corporate costs and you can see why things need to change.
What you say is true but at some point you need to spend money to make money.
Yes I certainly agree. But we should not be in the business of using our intellectual property, experience, and shareholder funds to build up high-tech assets like our biogas assets and then sell one of them to a partner for a loss (including Govt. grant money). RIWIF even get the benefit of our biogas IP for free, despite we shareholders taking on the risk over many years.
And it just gets worse. Our new biogas project, WAMMCO, was won solely on RNE's biogas reputation and our proven biogas IP, in my opinion. That win had nothing to do with RIWIF, and if it weren't for our so-called strategic alliance we could have funded and developed that asset in-house, keeping 100% of the future spoils. I would have gladly participated in a raising to fund the project, and I think most other shareholders would have too, given we seem to do biogas well. Now with this 30/70 alliance we do all the hard work to win biogas projects and we then only end up with 30% of that project, with RIWIF benefiting by not having to pay a single cent for all the millions of $ in IP and risk that we shareholders have funded over the years, plus they benefit via RNE's ability to win biogas projects.
I might change my tune if and when RIWIF bring some projects to the table, but if it is only going to be RNE doing the hard yards at finding projects then I can only see RIWIF as being parasitic. I guess our ability to fund larger projects via the alliance may allow "efficiencies of scale" and thus a better profit margin, but whether that eventuates remains to be seen.
The last 11 years includes the GDY days and the false hope we were all given for a Geothermal Tech that wasn't proven.
I was in GDY too and lost a lot of money, but in my mind they did prove that the tech worked; it was the change of government and said govt's anti-renewables policies that killed the project. Seems we are still suffering a similar fate due to govt policy changes.
I guess you are glass half-full and I am glass half-empty BM
(20min delay)