Bullboard - Stock Discussion Forum 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... see more

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Maxim Power Corp > Good News - operating problems appear to be resolved.

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Post by Kiln on Oct 25, 2024 9:46am

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.

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