Alterra Power MGMXD

RE:RE:RE:RE:RE:NR

[carinthian]

Bob you are of course right but on the other hand I do not assume that there are that many electricity producer either, so I thought this would have been a possibility. I mean the main reason why the aluminium smelters are located in Iceland is that energy is so cheap that this is a way for Iceland to export it's energy when they get the bauxite and make aluminium out of it.

I think the powerline thing is too expensive given what amount of energy could be exported over it and getting the power over such long distances causes a lot of loss of electricity I think?

I do not know if there are any gas fields near. If there are maybe an LNG plant would be interesting using cheap geothermal power to produce LNG and then ship it?

What you wrote is exactly the reason why I would not be sad at all if they pull out of Iceland (in the interview Ross Beaty said he wants to diversify out of geothermal), reduce their stake to 25/30% or so take the money to forward built some hydroplants elsewhere or pay down their debt on the holding level and strengthen their balance sheet... I mean utilities use leverage but I prefer to see that on the project level and do not want to have high gearing on the holding level...

And when their balance sheet is nice and tight I think aiming for a dividend would be something that could increase the shareprice. 10mio of dividend would mean around 6,5% (pre tax) which would be very nice and should not be out of reach within the next 24-36 month in my eyes. I mean Toba alone should be good for around 25-30mio EBITDA a year (I know - not holding level but just to get an imagination) so if you are able to deploy half the EBITDA of Toba we quickly are talking about 10% dividend yield at current prices.

Personally I would prefer to see them deploy money to projects with higher yields than paying the money out but a dividend might be a move to increase the shareprice when a thing like bute inlet seems realistic to raise some money on the equity side or so...

Time will tell. :-)
Just my personal thoughts. DYODD
carinthian