RE:Echelon Wealth - Buy - $1.00 targetFlawed analysis. Analyst assumes no additional shares will be issued despite assuming each plant can only raise 60% in project debt financing. He assumes that the 100% Cielo-owned plants (Aldersyde and Fort Sask phases 1,2,3) will cost $163 million so 40% equity financed means $65 million to be raised.
"In our analysis summarized in Exhibit 1, we have assumed project-level debt financing of 60% (which we believe to be reasonable on the basis of the Company being able to secure offtake and supply contracts) with an amortization period of nine years (a conservative assumption relative to the expected useful life of the facilities)."