From gong show to rockstar: Geneva-based Etrion Corporation (
TSX:T.ETX,
Stock Forum) investors have finally learned what happens when the rubber hits the road, riding a massive stock climb since July that has seen share prices climb from a 52-week low of $0.15 to $0.74 today.
The upward shift, which is just shy of a five-fold increase, got a 7c nudge Thursday after
financial results were released showing consistent kilowatt-hours from their 17 solar power plants, a slight increase in revenues, and minor profitability over the quarter.
Central to the bullish investor sentiment is a purchase agreement with Total SA (
NYSE:TOT,
Stock Forum) and Energias Renovables to “build, own and operate a 70 MW solar project in northern Chile that will be owned 70% by Etrion, 20% by Total and 10% by Solventus.”
When complete, the project will nearly double Etrion’s annual megawatt production.
“The total project cost of approximately US$200 million will be financed 70% through non-recourse project debt financing provided by the Overseas Private Investment Corporation. Construction is expected to commence in the fourth quarter of 2013, and the project is expected to be operational by the first quarter of 2015.”
Company CEO Marco Northland stated in a news release
, “We are making excellent progress on our development pipeline in Chile and expect to start the construction of Aguas Blancas and Project Salvador within the next 90 days, almost doubling our current installed capacity of 60 megawatts. Etrion will be cash flow positive in 2015 with a diversified platform in terms of both geography and contract regime.”