RIA rialto energy limited

the value of the gsa

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    Hi all
    Been crunching more and more numbers and variables tonight after adding another 350k shares today at 33.5
    I was interested to read the valuation sensitivities to the gas price.
    Noting that country imports LNG at approx 9 dollars per mcf, and looking at the valuation impact of a 5, 6 , 7 mcf gas price I have concluded that RIA is in the enviable position of derisking the project through the lock in of a GSA for both price and quantity. This is the equivalent to developing an oil project and locking in a buyer for your production at 100 dollars a barrel over the next 7 years. One of the risks of a 300-400 million capex project that will be largerly be funded through debt is the revenue risk. It seems to me that RIA may eliminate the risk from the outset.
    In addition all report that I have read have valaitions ranging from
    88 cents to 1.40 use an gas price assumption of $5mcf. If the GSA is struck at prices higher than this which is possible then the valaition impact will be very large.
 
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Currently unlisted public company.

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