Good question, Dan. The answer is yes, ZEN does generate...

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stan255

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22/01/20

15:33

Post #: 42517720
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Originally posted by danhoff ↑

Actually, Stan, THAT is a good point. How much of the revenue to Zenith is variable? Is a typical 25 MW station 'usually' running at 20. But now the power users need 25.

Is it so simple?

Can our current contracts, with no change and no uplifts, and no new builds produce an extra 5% revenue.... 10%?

Revenue for this 2020 is projected about 67 mill. Could it be suddenly +5% or 70 mill with no changes. And that 3 mill extra would increase EBITDA by $2 mill, which would mostly fall to the bottom line.... so after tax that could add 1 cent on final EPS. Then my 5 cent EPS bottom (and 70 cent fundamental share price), becomes a 6 cent bottom - and at a PE of 14, you have an 84 cent share.

Is it so simple. Stan, your theory is most welcome!

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Good question, Dan.

The answer is yes, ZEN does generate additional variable revenue with the higher gold prices (to a point).

The fixed revenue component is based on the capacity installed.
Then the variable revenue component is generally around 30-35% of the total contract revenue.

ZEN Price at posting: 72.0¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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Good question, Dan. The answer is yes, ZEN does generate...

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