RE:RBC LCFS Foundation Report excerptscapedcrusader wrote: Here you go @Wynner
Investment summary
We expect Tidewater Renewables’ shares to perform in line with its peers for the following key reasons:
• Potential for strong cash flow contribution, but uncertainty over the timing and magnitude of an LCFS recovery. If B.C. LCFS credit prices recover, we believe the facility could produce roughly $120 million in annual EBITDA. However, given the uncertainty with respect to the time frame and magnitude of a recovery in B.C. LCFS credit prices, we believe material upside in the shares may be capped.
• An early mover with an ability to leverage Tidewater Midstream’s existing platform. With minimal renewable diesel production in Canada at present, we think the company will benefit from being an early mover that can leverage Tidewater Midstream’s existing assets to drive strong economics for its projects.
• Feedstock flexibility and security help mitigate pressures of increased competition. By incorporating a pre-treatment unit at the renewable diesel and renewable hydrogen complex and securing tallow and used cooking feedstock volumes (historically waste products with little market value), we think the company is well positioned to use minimal volumes of higher-cost feedstocks such as vegetable oils.
•Potential catalysts. The renewable diesel project generating EBITDA consistent with management's guidance for "run rate" EBITDA; increases in renewable diesel pricing; further favourable announcements related to securing feedstock volumes or LCFS and CFR credit values.
Sector Perform Speculative Risk TSX: LCFS; CAD 1.74 Price Target CAD 5.00
Key Statistics
Shares O/S (MM):
Dividend:
Float (MM):
Strategic Ownership: Tidewater Midstream owns 69%
Key here is "If BC LCFS credits recover." Which they have done. June/July were not good.
Also NDP goverment has a majority . Greens are on side too. 2 seats.
AECO gas has been around $2 since mid November. Good for midstream gas plants.
Canada LNG iminent production will absorb LCFS credits for years.
There you go...All caught up with uncle Warren.