Hazer margins, page-3

I agree in terms of the current usage of hydrogen. Even ignoring the likely boom from FCVs, current dirty hydrogen use in fertiliser plants for example is putting pressure on those manufacturers. It's no coincidence that the fertiliser manufacturers are behind a number of the pilot green hydrogen proposals. There's pressure from their investors and customers for greener fertiliser. Look at Yara in WA, partly owner by Norwegian wealth fund if I'm not mistaken, with that fund likely applying pressure.

Back to Hazer, if I have my numbers right, a single 2,500 tonne plant with $1kg margin more or less justifies half current MC ignoring corporate overheads. They will no doubt have to raise some more equity over time, but once the CDP is proven project finance should be more readily available and they can become much more leveraged. Assuming MIN works out, those projects may get royalties that are less than this margin, but no capex required. This is why I like the two paths they have chosen.

The upside looks very impressive, and with the strong and growing interest in hydrogen, this is one of the few quality hydrogen plays on the ASX. That should magnify the upside once the broader market catches on.