the problem with geothermal, page-6

GRK's problems run deeper than HDR risk, unfortunately. They were positioned to be the most punished during any correction, as has been mentioned on both threads, but it has in no way capped the upside. There are still a few wildcards concerning GRK. Thier most pressing objective must be to attract a partner and financing, in order to secure a rig. Until then, they are not worth much more than their current market cap (at least until GDY proves the concept).

I bought into GRK too early, but I have always taken the view that I would rather be exposed to the downside than not exposed to the upside.

For me, GRK is nothing more than a medium term trade at the moment (getting burnt at present, but booked some useful losses), with no reliable indicators that they are sitting on an extractable resource. My stance may change as drilling reveals the geology, but I would never view it as an investment grade stock at this stage. I am of the firm belief that their project will only be marginally economic when compared to GDY's, and that the contract for Olympic Dam power supply is likely to be awarded to GDY, and the significantly lower $/MWh offered. The ROAM data will have a large impact on these assumptions.

I don't have any data to back these assumptions, but if the capex for transmission can be dealt with, O.D could be one of the initial and primary customers for GDY's first 500MW of output.