Post by
catchascatchcan on Mar 30, 2022 4:34pm
Worry less about the MOU and more about the project
While MOUs are not binding, it can well be expected that should the project be sanctioned, the MOU would result in a firm contract. What concerns me is that the project itself is very ambitious, and may not be build. It is a $4.5B project, spans 5 states, is 2,000 miles long, and plans to integrates 30 industrial plants. It will be the biggest CCS project on the planet. For anyone who's worked in industry, you'll appreciate the grandiosity of this project, and the regulatory and corporate challenges. it's wildly ambitious at best, and at worst would border on hubris. So while it's exciting that we've signed an MOU and is a feather in managements cap, please do not assume that this is anywhere near a slam dunk. We are along for a ride, and have zero input or say into whether this project is actually viable. I live in AB, and high-speed rail has been proposed between Edmonton and Calgary for a decade. It was just announced that $550M of financing was secured and an MOU signed with a hyperloop outfit for R&D, enviro assessments, and securing of land etc. The project mind you, would be $20B investment and be a decade out to build. Will it come to pass just becuase $.5B was dog-eared? Who knows, but the answer is far from absolutely. In this analogy, we effectively signed an MOU to build some components for the railcars of the yet-to-be sanctioned project. Granted the CCS project is planning to built in 2024, my point is that it is firmly in the planning phases. While it's definitely helped us find a hopefully longer-term floor under the share price, the floor would fall out in an instant if the project were to be cancelled. Negative nancy on a second +15% day, but just a comment on where my concerns lay. GLTA and here's to more green days.
Comment by
filoux004 on Mar 30, 2022 4:40pm
Excellent feedback.Tx peace