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GraniteShares Gold Trust BAR

The investment seeks to reflect generally the performance of the price of gold. The Shares are intended to constitute a simple and costeffective means of making an investment similar to an investment in gold.


ARCA:BAR - Post by User

Post by alleyesonmeon May 30, 2021 12:49am
233 Views
Post# 33293657

Future possibility's of distributable cash.

Future possibility's of distributable cash.BCD. I always look forward to your insights, especially coming from someone with accounting experience. In the past you've posted some "back of the envelope" valuation scenario's as well as recurring revenue projections. Very enjoyable. As I mentioned previously, we should reach a point were the annual project completion, (and the developer dollars received), should cover the cost of running the business. Not sure how many MW's online annually would achieve this, however it's surely far less than 100MW of annual completion. We could see profitability squarely off the development fee(not 2021), after all this fee targets the cost for UGE to bring the project online with a gross margin aimed no less than 20%. The projection of 18.m usd recurring revenue off 100mw (2024), anticipated to be "north of 75% gross margin" equates to 13.5.m. (2024). If the company decided to implement a dividend of half the gross margin on recurring revenue (6 750 000$), on let's say 45m shares(presently 36.9.m fully diluted). UGE would have 15c per share to distribute. This is whats so exciting. A through-put goal of a 100mw online every year after would very conservatively yield 75c by 2028. If the company was able to distribute 75% of recurring revenue gross margin it would be a 22.5c annual dividend incrementally increasing to 1.125$(2028)...all amounts USD of course. I think very possible and conservative if they deliver on goals. (Haven't missed a publicly stated goal yet).
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