RNE 25.0% 0.3¢ renu energy limited

With the liklihood of success increasing, I can practically feel...

  1. 1,843 Posts.
    With the liklihood of success increasing, I can practically feel the zing of those 3.6 million MWh produced annually at the 500MW capacity stage (assuming 10% downtime).

    From that $5/MWh will go towards operational costs, and the rest can be spent on reducing the debts from construction, which could start anywhere in the region up to $2.5B (chamber of commerce has estimated that companies in SA alone will be spending $25B on infrastructure for current projects in development; http://roxbydowns.yourguide.com.au/news/local/
    general/power-costs-unknown/1216758.html).

    Depending on future prices in the NEM, annual revenue will be in the region of $0.2B per annum. The structue of equity and debt in this project is impossible to predict (fingers crossed for low interest government loan), but you can see that once intitial capex is paid off, the geothermal model is outstandingly profitable, and virtually perfect for high yield dividends. Further expansion will be extremely likely if the flow rates can be sustained and thermal depletion does not advance significantly faster than current models predict.

    Every banker, insto, fund manager and their dog is going to want part of this project. They ain't getting mine!
 
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