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Polaris Renewable Energy Inc T.PIF

Alternate Symbol(s):  RAMPF

Polaris Renewable Energy Inc. is engaged in the acquisition, development and operation of renewable energy projects in Latin America. It operates 82 megawatts (MW) geothermal facility in Nicaragua, three run-of-river hydroelectric facilities in Peru, with a combined capacity of approximately 33 MW, a 25 MW solar plant facility in Dominican Republic, a six MW run-of-river hydroelectric facility in Ecuador and a 10 MW solar plant in Panama. Through its subsidiary, Emerald Solar Energy SRL, it operates the Canoa I Solar Park located in the Barahona Province, Dominican Republic. Its San Jacinto-Tizate Geothermal plant is located in northwestern Nicaragua, in the sire of San Jacinto, municipality of Telica, 20 kilometers from the city of Leon. Its Vista Hermosa Solar Parks are located in the village of Vista Hermosa, Corregimiento de Pueblos Unidos, Aguadulce district, Cocle Province. Through its subsidiary Generacion Andina SAC, it owns 8 de Agosto, a Run of River hydroelectric operation.


TSX:PIF - Post by User

Comment by oilandgas111on Apr 20, 2011 2:52pm
290 Views
Post# 18463218

RE: RE: RE: Valuation

RE: RE: RE: ValuationGreenandgold
If u take all the assumptions I took for SJT u will see that my NPV is good. The overruns costs at SJT make the project not that much economic. If they get another overruns costs,  the project will be not economic or almost not economic depend on the overruns costs. Without this overruns costs the NPV would have been twice. So yes overruns costs do matter, it change the economic of a project. And I know what I am speaking about coz before living from my investments I was credit analyst for big companies department in a bank in Switzerland. I had to spend my day computing if the project was economic enough to lend the money to the company.
Analyst take 12% discount rate for nicaragua project and 10% for US project (coz less risky to invest in US). To see the value of a project u have to discount the yearly cash flow (here we take EBITDA to simplify) to the 12% discount rate.
At the opposite I find out that US project seem a lot more valuable on the paper. Now we have to see if they can can make them without overruns cost. But If I am buying now RPG it is for US project not SJT.
Julien
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