Post by
Carbonbull on Feb 19, 2022 2:00pm
hellyer is now a definitive contract
The only remaining piece of the puzzle to a 110 million dollar ebitda 2023 is the project financing componet . INMHO this is not hard to model with 85 to 90 percent project financing available with the declared economics (payout in less then 18 months. The questions then becomes 1)what is the appropriate multiple for an ESG remediation company with a pipeline of 6 more major projects implying year on year growth of north of 50 percent ? 2) does the company accelerate growth in 2023 with a large equity financing ( dependent on first question) or does it bootstrap from internal cash flow 3) when does the company start a dividend 4) how many more projects can the company win given the size of the remediation market. 5) can the company deploy in the 12 month time frame layed out in analyst report.
If the answers to all the above are favorable, 2025 could see a 250 to 300 million ebitda. with a 10 multiple, so give or take a $10 stock.
Just my thoughts as always do your own DD and be careful out there lots of volatility and risk.