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Exactly and why i am surprised they haven't been approached regards a buyout/takeover.
I don't think a buyout is something the Guptas would consider knowing they will be debt free in 2-3years with a £200+million asset generating annual profits of around 20-30million for the next 35years in a rapidly growing economy
Has to be one the safest and best plays out there.
Has to be
I agree the NAV figure looks to be on the low side at 50% of the new build cost when it still has a 35 year life expectancy. They do still have to spend a fair bit to clean up their emission as I recall but the deadline for that was extended due to the effects of Covid. I've not heard any news on that of late. Needless to say £50m Mcap for a 500mw plant (coal + solar) with 35 year life expectancy is comical! Surely nobody but the Indian state is going to build new power stations @ £820K/MWH when you can buy shares in OPG for £100K/MWH
Q3 Expectations
Net cash position 20-23million due to record PLF
35years remaining plant life
Plant value based on government replacement costs 245million (book value is low by comparison)
Share price who knows but with such a strong balance sheet and cash position m/c should easily be a minimum of 3x todays m/c if not 4x.
Great opportunity to top up with Q3 results on the horizon
Should make for a very good 3rd quarter
Looking forward to the trading update in January, it will confirm how well they are doing. Anyone selling now will look back in 5 weeks and kick themselves.
Think I heard them say the October PLF was 91%(?) the highest ever in OPG's history.
So a new power station costs £350m
Book value £171m
OPG Mcap £54m
India's power demand will increase year on year. With such high capex to build new power stations and I would guess interest rates for this kind of debt at about 10% I really cannot see a rush by other providers to bring new power projects online, given the miniscule or negative profits after accounting for capex/debt repayments. Maybe the Indian govt will intervene to build more state operated power stations or maybe they'll allow higher tariffs to encourage the development of more privately run projects.
Either way OPG is in a great place with minimal debt and a long life asset. PLF will surely need to increase year on year to help meet demand. India's domestic coal production is increasing so coal price will come down. Surely this share should be in the 20's by now.
Strange shareprice reaction following the investor presentation, maybe because of the vague answer regarding dividends,
however they did refer to the strong cash position indicating it shouldn't be to long before shareholders are rewarded.
I'm saying the opposite. Not worried at all....
35 years plant life left so wouldn't worry to much
If the replacement cost is £350million for a 50year plant with 35years left to run OPG's plant should have a value of approximately £245million reflects how undervalued OPG currently is
Not surprising, Management confirming that based on the latest guidance from the Indian Government, a new thermal coal power plan would cost £820k per MW to build, which would imply a replacement value of £350m for OPG's plant.
Makes sense for the market cap to be at £50m lol
Should see a good jump this afternoon after todays investor presentation
Definately on the
"The Company expects to deliver strong operational and financial performance".
I said they had underplayed their target price back in September now updated to 27p and still shy of the mid 30s i expect over the next 5months
This market is all about a fast buck now. Nobody cares if a stock is making £10 mil or losing £10 mil a year, if it's flying everybody wants to buy it and if it's dead nobody wants to play it. Sad times
Piece at the end about the replacement cost of the plant being about 6 times the market cap . Even though it's second hand that seems like a lot , but in the current market who knows .
What's going on with this share price, why isn't it rising? Already price in? COP28 Phasing out of coal announcement spooking investors? Crap stock exchange?
You are either a none holder or a stale bull
I voted for share buybacks and it got approved so at some stage it will happen so that is balanced.
One more stupid comment from you and you will be filtered, you tried this crap on advfn and got banned
Davey,
when will the buybacks start.?
thy agreed buybacks before but never transpired
keep it balanced, not always the bull narrtive
co in a better place now though
Hazbeen, stop trying to bait me you are boring.
Yes it's weak atm NT to sell and 13.21p to buy, people just want momentum now nobody wants value it's a crazy market
the buybacks will fix this problem
Very disappointing reaction to that RNS. What more would any (potential) investor want? Quite unbelievable.......
Dvey,
lets hearabout online quotes today.
all dried up
hold for next year now
Will be a big jump in shareprice after Fridays investor presentation.
Limited stock so SP will rise quickly
Happy Xmas !!!
I've not seen any stock issue results with these kind of numbers, it's certainly the best value stock out there and when
the buyback kicks in whenever that is the price should eventually double
More big late buys good news about to drop
RNS this week