A possible scenario might be that Origin could stump up some of that cash (8 billion rings a bell) from the sale of their CSM assets to Conoco Phillips (That is if the USA still exists.)
What is more sure is that if all goes to plan there could be a seriously derisked company with shares for sale at the seriously right price for the patient. Mr Buffet tells the story about the market taking from the impatient and giving to the patient.
The emissions free factor gives the company a distinct point of difference which could be utilised to some advantage and foward predictions for South Australia around 12 months ago indicate a large increase in power supply was projected. I read Linc takeover of Sapex relating to this fact.
Members of the board are well connected through TATA, Origin and Leightons.
I remain upbeat long term.
If they successfully drill to 6000m and pick up the efficiencies of the extra heat and reduced capital required we may have change left from current reserves (NOT)
Another option may be to float the transmission as a separate entity or sell the rights to Origin/transfield or another as they do for gas transmission pipelines though getting the right terms would be a challenge. The higher the coal price the more competative GDY will be and the greater our chance of securing funding.
Might just have to hibernate for twelve to eighteen months. In fact I'm getting sleepy now................afijoa;lkjd;;;;;;;;;;;;;;;;;;;;;;;;;;;;;zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz
RNE Price at posting:
77.0¢ Sentiment: LT Buy Disclosure: Held
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