Maxim Power Corp T.MXG

Alternate Symbol(s): MXGFF

Utilities Utilities - Independent Power Producers

Maxim Power Corp. is a Canada-based independent power producer, which is focused entirely on power projects in Alberta. The Company acquires or develops, owns and operates power and power related projects in Alberta. The Company’s core asset is the 300-megawatt (MW) H.R. Milner Plant, M2, in Grande Cache, AB, which is a combined cycle gas-fired power plant. It also explores additional development options in Alberta, including its permitted gas-fired generation project and the permitting of its wind power generation project. The Combined Cycle Gas Turbine (CCGT) expansion of M2 captures waste heat that would otherwise exhaust into the atmosphere and converts it into low carbon dispatchable electricity for the Alberta power grid. In total, it has about 600 MW of natural gas and wind development projects at various stages. Summit Coal LP is a wholly owned subsidiary of the Company that owns metallurgical coal leases for Mine 14 and Mine 16S located north of Grande Cache, Alberta.

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Maxim Power Corp

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Post by Kilnon Oct 25, 2024 9:46am

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Post# 36281801

Good News - operating problems appear to be resolved.

Maxim's shareholders have endured a couple of diffiicult years. First, a fire that set back the plant expansion 12-months. Second, erratic production with the plant operating well below expansion capacity (300MW) and periodic shut downs, as they worked to correct the operating issues. This morning the plant is operating at 291 MW, so the operating profile has finally improved (https://www.dispatcho.app/live/HRM)
Natural gas prices are holding around $1.50 a GJ, so margins should be healthy over the next 6-months, when electricity prices tend to be higher.
There is a good chance the coal assets get sold to Valory, adding to the current $1 per share in cash.
The NCIB is shrinking the float, increasing the controlling shareholders percentage holding. The company should be able to go private in the next year, with net cash available within the company to buy out the minority shareholders.