RE:RE:RE:EarthRenew Generates $505,097 In Revenue From Electricity SaHey Barstoolsage,
Nice work. I'm up to 25,000 @$0.35 average. May add if it dips back into the $0.30 range.
With 85 million FD float, $0.30 is ~$25 million market cap.
Forward 2022 revenue figures to be more than the expected $10 million run rate at June 2021. They suggest $15-18 million in their March presentation, but with the power agreements signed since then you can add $1.5-2 million to that figure. I anticipate more upside as it sounds like there might be addiitonal deals to announce soon.
This assumes, of course, Strathmore gets permitted in the next few months. Regardless, a $25 million market cap for the forecasted revenue seems fairly cheap in this sector.
Longer term, I'm hoping the float won't go beyond 150 million against projected revenue in 2025 of between $100-$120 million. With 150 million shares, $110 million revenue, and $20 million EBITDA, I would project a reasonable share price target of $1.20-$1.60/share. This is highly speculative, of course, but running the math gives me some sense as to where they could end up in a few years, if the additional plants are rolled out as planned.
There's upside beyond this if the market starts assigning premium ESG multiples.
Lastly, they've talked about non-dilutive financing initiattives collarteralized against off-take agreements, so that might be the kind of announcement in the works.
My two cents, and why I think anything under $0.35 is a high-probability speculative bet.
BarstoolSage wrote: So I chased more and overpaid wrt current but I'm up to 21000 shares now, a nice meaningful number. BC I expect you are happy with this tidbit
BarstoolSage wrote: Strathmore now licensed until 2031....a big win buried in this NR
I may not yet be done...dunno