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Nevada Geothermal Power Inc V.NGP



TSXV:NGP - Post by User

Bullboard Posts
Post by riverrockon Jun 22, 2010 5:47pm
534 Views
Post# 17212246

Concerning the price per MW and potential sales at

Concerning the price per MW and potential sales at
In Jacob's March 2, 2010 report (page 2) they estimated 2011 power revenues at 45 MW capacity to be $ 32,363,000.

32,363,000/45 x 24 x 365 or $ 82.10

At 47 MW net
82.1 x 47 x  24 x 365 = $33,802.21.2

Also in NGP's March 31, 2010 (q3) report under note 2, that depreciation would be over 30 years on Plant Equipment and 20 years on the Well Fields.

Depreciation should be after considering the full year  (see note 4 of q3 report)

On a total annual 2010 basis
Plant equipment, say $91 million, 91/30, or $ 3.03 million
On well fields, say $79 million, 79/20 or $ 3.95 million

Say a total of $7 million depreciation and depletion, which I believe they can defer 50%, or $3.5 milllion for later dates (say in 5 years) when revenues should be more solid. They still will have that money in hand and taxes over the first five years should be nil, due to the loans.

I believe showing earnings will enhance the stock price, especially with investors turning  attention to geothermal. As a result new share floats at solid prices would bring needed funds to pay down high interest loans.

Plant operating costs should be low as  5 people per shift should run the plant.

With the TCW off the books, this company can become a big winner.



Bullboard Posts