appleturnover3 Feb 2013 13:28
Thats the crux of the investment case here (ie turbine sales) looking at projections for a 'multiple' increase of the SP & rightly pointed out. However thats not the only reason underpinning any investment here.
The group after tax loss as stated in the last half yearly report (29th nov) was £1.3M (down from £2.6M). Both electricity & steam sales are up significantly with the South African plant still operating well below capacity & additional capacity expected for early 2013, hence additioanl revenues from normal operations. Accordingly thats a very near term move into making the plant profitable & consistent with the Chairmans statementin the half yearly report.
The SP here was around 3p BEFORE any mention of the turbine sale to Iris. That (the Iris deal) resulted in the $3.1M non refundable dposit paid to the company. That equates to circa 1.8p added to the SP so we're still in a much better position even without the sale going thru.
However, we do know tthat Iris are still looking for that sale to be concluded with a strong likelihood of continued interest from additrional parties for the reasons already mentioned.
Without the turbine sale, IPSA's cash position has already improved thru the $3.1M deposit already paid & the strong regional growth in demand as well as near term additioanl capacity , puts IPSA in a very good position.
With the turbine sales (which i believe is the much greater likelihhod for reasons also mentioned), the company will be looking at a transformational catalyst and why the SP projections of 23p etc are being mentioned.
As always, everyone needs to do there own independent research but the low number of free shares & impact of a successful completion of the sale, should have a major & immediate impact on the SP rather then a more gradual but concerted rise thru additional capacity added etc.
atb
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