Another duck lined up. All we need now is the dripping roast.:)
$147M Qld Government Transmission Line Funding Package
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Another duck lined up. All we need now is the dripping roast.:)
$147M Qld Government Transmission Line Funding Package
Simon was presenting at a conference this week and he basically said that he is working from home to sign contracts and contractual close for Hydro Project will (not may, no ifs or buts) happen this month. I don't think he would make those statements without being a 100% sure.
Wow what a day yesterday. I don't even try to summarize myself so I just take it from this article: https://themarketherald.com.au/genex...hsfp=213900686
First off the ugly: Huge raise and discount. Massive dilution. Very bad for non-OZ/NZ holders as they cannot participate in the rights issue
The Good: We are going to retain 100% ownership of the Kidston Hydro project. That's avg ann revenue of $82.5m until 2055, avg group EBITDA margin of 79%, over 85% of revenue contracted for the next 30 years and no material tax payable until FY2039. But even more this is the mothership that will allow us to raise more money for other project in the future. I see it as the family home against which we can secure funding at great terms.
The Great: ARENA. Let's not beat around the bush they gave us amazing terms. First forgiving a $9m debt, then giving us another $47m in grant money and of course the NAIF loan at sub 3% pa interest.
At first yesterday's announcement came as a shock to me. The huge discount hurts, especially to recent buyers and to some who have a shorter investment outlook. However after digesting the news I see us retaining 100% ownership of Kidston Hydro as a huge plus going forward for financing of future projects.
I already have lots but I'm still going to take up all my rights. Although returns for shareholders won't be great based on current and projected numbers the upside as one of ASX's last remaining pure Renewable Energy sector plays and other projects coming up like Bouldercombe Battery and Kidston Wind I still expect to have significant return on my investment in the years ahead.
This is going to be the first Pumped Hydro project in Australia for over 40 years. Developed over 5 years by a small company that has also already delivered 100mw in Solar generation. Although the road so far has been bumpy I still am happy to be a big investor in Genex.
Yesterday it was reported that Atlassian co-founders Mike Cannon-Brookes and Scott Farquhar have piled into GNX. If I was a little bit on the fence whether to take up my considerate amount of rights at 20c I think these news have assuaged my concerns. They are also a major backer of Suncable which has lofty ambitions for energy production in the NT. There are possible synergies in play in the future which makes perhaps Genex a more attractive option to potential investors.
Thanks for the summary silu.I like how the s/p is holding up .We are well positioned for a long stable and growing cashflow stream and the best thing is its all green.
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Nearly there,
- Following PD Contractual Close, Genex is expected to complete the Finance Document Contractual Close process, including execution of the $610M Senior Facility Agreement with the State of Queensland and the $47M Funding Agreement with the Australian Renewable Energy Agency, in the coming days.
I'm very happy and although returns so far haven't been that great the fact that we are getting a project as big and complex as this over the line is a major weight of my shoulders and the future will look bright for Genex shareholders.
discl. I'm going to take up all my rights
Financial Close for Kidston Hydro achieved! It's been quite a journey over the last 5 years but I'm glad we are getting our flagship project over the line. Hopefully many more renewable energy projects to follow in the coming years.
A summary of things that have happened over the last weeks:
- I was a bit too hasty before and called it "financial close" when it was actually "finance document contractual close"
- A rights issue at 20c ($20m was taken up by shareholders, approx $15m worth going to the underwriters)
- Construction commenced at Kidston Hydro project taking approx 3.75 years to complete (note its a fixed cost contract)
- Shareholders approved the $25m investment by J-Power (which will be between 0.211c and 0.2337c per share)
to come:
7/5 confirmation of share price sale to J-Power
18/5 settlement of share issue to J-Power and appointment of Kenichi Seshimo to the Genex Board
19/5 financial close