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"EU conference , looking at future funding opportunities for new PCI projects to 2021. Great information to throw into the mix when evaluating potential projects for project’s 3&4 #INFA"
Now, that begs the question, does JW see Infa as a "facilitator" vehicle, using its EU networking skills and PCI experience to "build and sell" , or even just retain minority carried interests, and move onto the next project(s)?
I've stated to think that may be the plan O&W. Get the project to a certain point, sell a chunk, keep an interest and move onto the next. So many possibilities here and only a small group know what the real plan is.....
Indeed, spud.
Just consider this. Keeping a minority, free carried interest in IslandMagee, in recognition of the monies already spent up to and including their 50% share of the FEED study this year, would eliminate the need for any equity dilution by Infa to build up a much larger stake that we all think is the end goal.
Let's say Infa has spent £15mn and can earn a 15% carried interest in the project Phase 1, costing £100mn. And let's assume that Phase 1 generates one half of the projected net revenues of the entire project, then, from last January's presentation, Infa stated:
"Modelled revenues over 20 years once operational: £1,219.5m (real/money of the day)"
That's £60mn average p.a.
15% carried interest on that would generate £9mn p.a. to Infa. for 20 years. Maybe for 40 years, according to JW.
Now compare that annual recurring revenue of £9mn to the current £5mn MC.
For those who can grasp the value disconnect here, get your buying boots on. This discrepancy won't stay forever, especially if this IS indeed Infa's chosen strategic plan and it is communicated to the public in the next few months (maybe in December at the public meeting?).
But it doesn't stop there. JW looks to have plans to go after projects #3 and #4 in the PCI arena. Add-on business to the core IslandMagee carried interest stability, each adding its own incremental value opportunity, using this same approach of "build and sell".
We just need some more communication from JW about these plans and how Infa intends to square the circle of funding IM and yet retaining a quantum of equity ownership.
Maybe we should looking at purchasing a few more fields adjacent to the Lough !!?...or even the Lough itself !
Great post O&W
Lots of options here