Alterra Power MGMXD

Utilities Utilities - Independent Power Producers

Alterra Power Corp is a renewable energy company. It is primarily focused on development, construction, and operation of renewable power projects. The company's business has four major segments - Construction and Development, Geothermal, Hydro, Wind, and Solar.

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Alterra Power > Blue lgoon ownership

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Comment by BoldForbeson Jun 16, 2017 10:32am

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Post# 26370702

RE:RE:Blue lgoon ownership

LucasKnight,

The valuation for Blue Lagoon has a wide range.

The Seeking Alpha article I posted pens an $80M-120M CAD (~$60-$90USD) valuation for Alterra:

"Through its 66.6% ownership in HS Orka, which in turn owns a 30% stake in the Blue Lagoon, Alterra recognized $7.669M in equity income, which means the resort generated $38M in earnings for 2016.

When you factor in the explosive growth of tourism in Iceland with the Blue Lagoon being a must-visit destination, this suggests a valuation of anywhere between 10-15 times earnings, or $380M-$570M. Based on these assumptions, Alterra's stake would be worth anywhere between $80M-$120M. Keep in mind: these estimates are based on previous year's earnings."

https://seekingalpha.com/article/4081089-alterra-power-corp-undervalued-renewable-small-cap-hidden-catalysts

Do you have a calculation to share on your $50M max?

Thanks,

Bold Forbes