Value?? Nice to connect with some of the old timers. Hope everyone is doing well. I am in WND and RM-TSXV. I bet heavily into lithium. Also have a couple of other small investments
-Grid Tied Energy Storage, Electic cars, ebikes, buses, plus consumer electronics such as those produced by Apple are driving lithium to major highs.
-Recent consolidation in lithium shows these are true, 700$ /tonne is higher then most metals out there.
-Rodinia (RM) will trade much much higher then 15cents, probably around 80cents in a year time
As for WND I would like to know if anyone put a target and crunched numbers on this company. I do know that it is next to impossible to build wind farms due to push back from communities in Ontario. Wind is at a halt so exist operations are worth much more. Enbridge bought out KHD for a nice premium a couple of years ago.
They have 70million float at 2.50 is worth 180million. They have 180MW in operation which would value it around 1million per MW which is construction cost.
I am not sure how to value this but you would have to create a net present value (NPV) to get the value today. Take all production revenue for the life of the contract and pull it forward. That is your NPV, that is what we do in solar power.
These projects are totally derisked and operation so worth so much more. KHD got bought out for 1million per MW, but its not a fair ratio. I am going to hold tight but not sure if I would be adding at these levels. Its a pure gamble.
A rule of thumb in the industry is 1million per MW but it depends how much energy you are producing, technology and life of the contract. Unconstructed projects are selling for 250K per 1MW.
ReduceCo2