According to the Sept 13 RNS there is enough coal to support a power station which will provide $10 million free cash flow for 50 years. Build costs of $30-$50m leaves at least $450m. Discount for risk and time it if you like and provide some incentive for a 3rd party buy-in and we are still looking at big numbers.
Let's not forget that the coal is in the hands of 3 minnows (Edenville, Kibo & Intra Energy), all of whom have been battered over the last few years. The main investment money is in the hands of the USA and China, neither of which operate as charities - they'll be wanting minimum outlay on resources to maximise profits from power generation. I imagine that some unpleasant financial trench warfare is going on behind the scenes, and that's why we have been waiting so long for an RNS. A ten-bagger would be wonderful, yes - but I'm setting my sights lower. Sussing the right exit point won't be for the faint-hearted if this one takes off.
I posted my thoughts earlier that might interest you.
I would say that 30 years supply to a 100 MW power plant must be worth in excess of £50m which could be conservative when you consider that would be less than £2m per year of operation. It could be more like £4m per year or £100m over the project life, obviously either of those figures turn this into a multi bagger from edenville,s current market cap of only £4m. It could also be the case that the recent management changes here was because the previous directors were not willing to consider proposed deals IMVHO
Guys do you think if this was going to be taken over that they would let this go for just 0.70p per share? I think they woul dhave to give atleast 2p per share considering the amount of coal we have etc and the fact that there would probably be more than 1 interested buyer.
Any decent mathematicians on here to give a rough estimate of what we would cost to buy out?
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