GREY:FTPLF - Post by User
Post by
sculpin2on Aug 23, 2019 5:40pm
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Post# 30060585
FGE bioenergy
FGE bioenergyPotential value in the FGE cogen bioenergy plant could be much greater than the $35mm IAM loan secured against it. Have an old FTP powerpoint from 2015 describing it as being worth $120mm. Also have some correspondence with a director few years ago that said... - Their deal with Hydo Quebec is not only very good but I learned is is not replicatable which makes a conversion very very attractive to a party that has cash and/or downstream viscose assets.
- 24 Megawatt cogeneration power facility: they buy industrial power and sell back to the grid for 3x the price.
Could be a good test of its value as Raymond James has a valuation of Conifex's cogen bioenergy plant at 8 times ebitda for a value of $112mm on a recent research report & CFF is in the process of selling its BC assets. I would think FGE's could be worth more as Qc doesn't have same current shortage of biomass aval as BC right now. However would need to know the details of the PPA with Hydro Quebec. FGE bio energy did about $21 mm in revenue recently.
Could be a good asset to sell to the likes of Boralex or Innergex. Right now the asset has a debt on it of about $35mm with IAM but could be substantial value above this on a standalone sale assuming this is allowed or practical? Or does this energy plant make the entire mill more attractive to a Sappi, Lenzing, etc???
Rayonier just sold their Matane pulp mill to Sappi for $175 million US...
https://www.pulpandpapercanada.com/rayonier-to-sell-matane-que-pulp-mill-to-sappi-1100001826/