One thing that I have not seen mentioned very much and not mentioned in the Morgan report is the reliance for the GNX projects on either Queensland Government Tax payer money, assistance for the Clean Energy Finance Corporation and a loan from ARENA that has been converted to a grant. My concern would be investing in a small new energy company that really relies on grants or government cheques and ongoing favourable project assistance by government corporations to get projects across the line in the first instance and propping up ongoing operations. And to see if they would survive the long term without ongoing assistance from, lets face it, government's that are pumping borrowed money from their budgets into these business to be seen to doing the right thing. What happens if this government money runs out into the future before the projects can earn a decent return on capital that would justify the business?
GNX Price at posting:
16.0¢ Sentiment: None Disclosure: Not Held
