OTCPK:MGMXD - Post by User
Post by
materialsgirlon Oct 24, 2015 1:08pm
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Post# 24223693
The more you look the more there is to like
The more you look the more there is to likeD
The Dokie 2 wind project will go into sleep mode for a few years or maybe a decade. Who knows? but here is the thing. This could be fired up within about 12 months if demand for the power came from BC government.
Dokie 2 has been written off on the company books. So, when the project is resurrected, and a resurrection is certain to happen eventually, AXY shareholders will get a sudden and nice surprise.
This kind of hidden value is akin to the many hidden royalty gems that Franco Nevada has on its books.
Dokie 2 wind project, British Columbia, Canada
At June 30, 2015, the Company holds a 51% interest in a wind generation project adjacent to Dokie 1 (“Dokie 2”) with a projected capacity of up to 156 MW. In March 2015, the Company received notice from an affiliate of GE Energy Financial Services ("GE EFS") that it does not intend to proceed with advancement of Dokie 2. The Company expects to complete an agreement with GE EFS to transfer its 49% ownership interest in Dokie 2 to the Company for nominal consideration. In 2014, the Company wrote off the deferred costs and goodwill associated with the Dokie 2 project due to a decline in the economic outlook surrounding renewable energy as a result of the latest Integrated Resource Plan produced by the BC Government and other reasons. The Company has maintained all existing permits and licenses in good standing and may look to further develop in the future when market outlook improves. Until the economic outlook improves any such costs will be expensed.