RE: RE: RE: RE: RE: RE: RE: RE: RE: The Hezy RAM DThank you for your excellent posts. I've got a lot of skin in this game right now and have a few questions for you, if you wouldn't mind.
I'm having trouble breaking down the costs of project finance. Example, we have a 72MW plant next year, in Nicaragua that brings in 56 million in revenue a year (8400 uptime hours per MW X PPA rate $93 per hour X 72MW). Then we subtract the direct cost of producing energy, let's say 28% of revenue, so we have a gross margin of 40 million dollars a year. Does that make sense, is it a conservative or aggressive projection?
If 40 million gross margin for a 72MW plant makes sense, then how much approximately are they paying back the project finance banks per year and for how long? And how does depreciation and amortization work (NGP always seems to end up with no profit despite bringing in millions in revenue)? How much of the cash flow can Ram direct towards drilling and developing their extensive catalog of companies. Will it ever be able to self-finance new power plants without project finance loans?