The latest mailout gives a very strong indication regarding the near-term catalysts for Kalina. Contracting TwelveSix Services, is akin to placing your house with Sotherbys and setting up the auction in four weeks' time. These guys are the best.
TwelveSix are apparently extremely well connected in this rather niche market of selling gas fired power to energy hungry users like bitcoin miners and AI data centers and have a long list of desperate buyers on their books. The mere fact that there are consulting services groups set up to do these highly specific transactions tells you how hot this sector must be in Alberta right now.
Look at their newsfeed on the TwelveSix website for evidence of how much activity there is in Alberta right now. So, to be in possession of permitted, well advanced and well sited projects is highly marketable and apparently the TwelveSix guys are extremely confident they can sell our projects.
Right now Kalina is a company with zero track record but enormous potential, the problem is everyone is waiting for that potential to be proven for at least one project. Then the market will believe. A single sale will also restore the company's balance sheet so that these small raises are a thing of the past.
Saddle Hills is the obvious one as its shovel ready and clearly surplus to requirements. With a ~64MW plant approved and likely grandfathered under the CER, that suggests based on the recent sale by TwelveSix, a valuation of approximately $15M AUD. The sale of this non-core asset makes perfect sense as it would free up funds to secure more sites in Alberta, progress pre-FEED work on current sites and provide operating funds as money spent by KPO on SH could be returned to the parent company.
And the company would still hold a further 1700MW worth of projects under its control with an inferred current value of circa $400M AUD right now if you were to assume the same value per MW. As the projects get further developed and even move into construction phase, those values are only going to increases
The question is, will buyers move in ahead of this first sale, in order to scoop up the last remaining cheap shares? Or will it take this first project sale and then a mad rush to get on board?
All IMO but it seems its all there is the announcements
KPO Price at posting:
0.7¢ Sentiment: Hold Disclosure: Held
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