Run of River Power Inc V.ROR

Fantastic News

[shlo]

Run of River Power and Concord Pacific Announce the Closing of Skookum Creek Power Project Financing

https://finance.yahoo.com/news/run-river-power-concord-pacific-230000085.html

[nanaimo16]

but I dont see any increased shareholer value.....? still $6million market cap, what gives?

[smoking81]

No increase in shareholder value until the plant is up and running and royalties strart getting paid. Plant belongs to Concord so only the revenue stream has value to ROR. Existing brandywine plant does not even begin to cover the large head office overhead and will never make any profit.

[shlo]

I agree, but let's look at the numbers: In about 9 months it looks like skokum will provide electricity to 4000 houseolds. I believe that this gives them around 20-25 M a year which is 2.5 M to ROR. in todays markets a multyply of 7-8 is more than reasonable. You get here an asset  value 18 M. This brings the share to above 15c.  After 5 years they have an option for half the project

[nanaimo16]

If the project brings in $25million a year and ROR gets $2.5million, thats 10% of the Gross........  In most cases any 'deal' like this is on the NET, not Gross. If ROR cut a deal at 10% of Gross, then that would be  fantastic, but unlikely. Following this closely to see how shareholder value pans out in ROR

[colin931]

I have really been doing a lot of research on the 2 most undervalued stock currently in bc an ror,and sea breeze is coming to mind. The ok for ror to go ahead is great for shareholder value because of the leaverage the bank institutions will give them. And I see the anylists are stepping toward ror currently in the strong buy category. When the power hits the grid the bills are paid first and then

[nanaimo16]

good post. Lets hope this works for ROR shareholders.  Synex (SXI) is somewhat a pioneer with Run of River Power along with Sigma Engineering. SXI has paid out decently for shareholders from time to time in the past and presently trades on the TSX at 52c. Some say these projects are difficult to finance, which is true in the early stages. Once a project is proven up then financing is

[colin931]

Yeah I know all about that I from the Pacific Northwest where the river floods extremely high on every spring runoff.  

[colin931]

Actually u r quite accurate on that assumption depending on debt load ratio and their vision for the future with a combination of hard assets in which they own for leverage. Good article.