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Western Wind Energy Corp V.WND



TSXV:WND - Post by User

Post by agrossfarmon Oct 02, 2012 12:27pm
135 Views
Post# 20438040

making things up

making things up

It is interesting to see people's opinions.

Thanks to all who have suggested a price, with more thanks to those who give the detailed reasons. That is the only way we have to evaluate the projections.

Without some kind of rationale, any rational person will ignore a pure guess. 

What counts for a buyout of the projects, whether operating or under development, is their cost and the return. Nobody has to build one of these renewable projects and, as those who are honest know, the only reason that companies are building them is because they are subsidized. They are not economic without the subsidy, whether it is up front cash, tax credits or an overly generous power offtake agreement with inflation pegged escalators. 

But once you get a cash flow (presumably $2.5 billion over 25 years) revenue minus opex expenses, you still have to discount that cash flow to arrive at NPV.

I am curious what rate of return you think the potential buyers will be using, and why.

My first inclination if I were a buyer would be 15%. 

 

 

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