Our new website is coming soon, give it a try now and let us have your feedback. Take me to the Beta

Email Facebook Twitter

TSX Lithium explorer International Lithium Corp prepares to drill at Raleigh Lake Watch Now

TSX Lithium explorer International Lithium Corp prepares to drill at Raleigh Lake
Exclusive: Hardman & Co Investor Forum - Severn Trent, Calculus Capital, Volta Finance, Residential

Inspirit Energy Share Chat (INSP)

Share Price: 0.0325Bid: 0.03Ask: 0.035Change: 0.00 (0.00%)No Movement on Inspirit Energy
Spread: 0.005Spread as %: 16.67%Open: 0.0325High: 0.00Low: 0.00Yesterday’s Close: 0.0325

Share Discussion for Inspirit Energy

View all INSP Messages

Please login or register to post a message on Share Chat.

Posts per page:

Posts: 153
Opinion:No Opinion
RE: NPV & IRR for the 6.4kWe model
19 May '19
Thanks for that Observer.
Just going through the last RNS.
Where do you see this going?
Just looked additionally at the CLNs for INSP and it seems 0.07p is the very minimum for share price conversion.
Posts: 5,297
NPV & IRR for the 6.4kWe model
19 May '19
I've done some sensitivity studies with my old friend CROE.

C: Conservative Scenario
R: Realistic
O: Optimistic
E: Euphoric

Although these values can be altered, I've kept them all the same in the results presented below:

Discount rate: 8%
Gas Price: 2.25p per kWhr
Electricity Price: 12p per kWhr
kWe: 6.4
kWt: 15
Lifespan: 10 years
CapEx: £10,000 (sale price and installation)
OpEx: £100 (average maintenance costs per year)

These values are altered:

System efficiency: C:80%, R:85%, O:92%, E:95%
Utilisation per year: C:60%, R:70%, O:80%, E:90%

As an example of the cash flows per year consider the (R)ealistic scenario:

OpEx per year: (£100)
Cost of input gas: (£3,474)
Value of electricity generated: £4,709
Value of thermal generated (assuming 92% efficiency of a conventional boiler): £2,250
Total value (virtual cash flow) per year: £3,385

At an 8% discount rate the sum over 10 years for that cash flow is £22,716 (Using the PV formula in the spreadsheet)

To find the Net Present Value take away the initial Capital Expenditure of £10,000 resulting in £12,716.

For this case the Internal Rate of Return is simply the discount rate which results in an NPV of zero, in this case 31%.

For a CapEx of £10,000 the NPV of the other scenarios are:

C: £8,126
R: £12,716
O: £18,083
E: £22,552

and the IRR's are:

C: 23%
R: 31%
O: 40%
E: 47%

As a result of economies of scale the all in CapEx might be expected to half to around £5,000 in time. The NPV's in this scenario are simply £5,000 larger. Namely:

C: £13,126
R: £17,716
O: £23,083
E: £27,552

and the IRR's are:

C: 53%
R: 67%
O: 83%
E: 96%

Reminder: the utilisation percentages are for those that might be expected from a commercial setting, not a residential setting, and are high because the expectation is that the 15kWt generated is only part of the total thermal energy required, The Inspirit Charger being the lead (i.e. comes on first) boiler in the boiler room. Other conventional (read cheaper), boilers come on when the demand is greater than 15kWt.

DYOR - the above might contain miscalculations or incorrect assumptions.

I'm happy to vary other parameters if there is interest.

Sounds too good to be true doesn't it!? ;-)


Share Price, Share Chat, Stock Market news at lse.co.uk
FREE Member Services
- Setup a personalised Watchlist and Virtual Portfolio.
- Gain access to LIVE real-time Regulatory News (RNS).
- View more Trades, Directors' Deals, and Broker Ratings.
Share Price, Share Chat, Stock Market news at lse.co.uk

Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.