Western Wind Energy Corp V.WND

agrossfarm

[bakken13]

Have you considered what the old wind farms would be worth to a buyer?

As the old small turbines die off, there will come a time when they will all be scrapped and replaced with the much more efficient and much larger turbines. So the acquiror will have all of the capex for the new windmills and all of the infrastructure to service them. Nothing much of the existing infrastructure could be used.

So I wonder how much value can be applied to what is essentially bare land with a power production permit?

[peter75]

that is where all the value lies   Capital appreciation of the land and the higher costs for power will pay the financing over time of new turbines Wnd turbines are all not old

[agrossfarm]

You are right. Anything but a newly commissioned project is more complicated to analyze and project into the future. Unlike a new project where you can know EBITDA in advance for 20 or 25 years, the older ones are more difficult because they require more assumptions AND could have wrinkles in the offtake agreement about renewal escalators (or not)...and then you have to model capex for new

[pandnh4]

I believe land is most often leased for wind projects, and those agreements are finite in time, just like the PPAs.  Both would need to be renewed at the end of the initial project's lifecycle if the owners wanted to repower a site.

[peter75]

Agrofarm your statement Ebitda - old or new are both the same once the numbers are crunched to figure out Assumptions- model capex for turbines- this is offset by depreciation commomly known as book value for each turbine Renewal esculators- no different than any other lease agreement that has steps tied to term dates with base lease price per farm increasing over time that reflects rate of return

[okostecki]

pandnh4 - I believe WWE owns all the land the projects are currently on - this is another reason there is much more value than most seem to think.

[peter75]

some are leases and some are owned Go to investor relations and look up the sites