OTCPK:MGMXD - Post by User
Comment by
carinthianon Feb 24, 2014 6:32pm
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Post# 22244975
RE:RE:RE:NR
RE:RE:RE:NR
Feel for you if you down more than 50% otherwise feel for me! ;-)
I am with you regarding the addiction of a PPA with the usual off taker to the price of aluminium. Question is if there is only plan A without a B? I would have wished that they did try to find another solution meaning another prtner to buy the electricity.
I really do hope they can get the planned expansion done (seems to me they are still waiting for resource definition?) soon and then leave it. Mantaining and cashing in dividends to forward more lucrative projects and pay down debt on the holding level as there is still 120mio of debt on the holding level waiting to be paid down for the purchase of HS Orka.
So getting HS Orka up to something like 250MW total would be ok but then please concentrate on making money with it. I hope in around 6-8 years when HS Orka has paid down the debt on the company level they should be able to generate a nice amount of cash as depreciation just reduces the profit but not the cash so... This should unlock 10-15mio/year for AXY.
And days like today are interesting. The news were not overwhelming but clearly show that the make one step after the other and we walk towards having 150-200MW (I really do hope that they do not give up more than 25% of the project) online within 18 month and the market does not react. I really do hope there is the same reaction when they secure to finance 100% and the stock price does not react because then I would be very tempted to add to my position.
One question to you fellow investors:
Does maybe anybody know some terms of the long term debt on the holding level? I tried to write several emails to IR but as it seems they seem scared to answer questions from austrian investors. :-)
So let's prepare for another 4-5 weeks of waiting until the 2013 results come out and hopefully the call will give further information on what their plans are 2014 besides Shannon and Jimmie Creek.
Time to go to bed.
As alsways: My personal thoughts. DYODD.
carinthian
Even Ross Beaty did admit in a recent interview I did see that geothermal is tougher than he thought. So JV'ing Chile, Peru and Italy might have been a wise choice.