development of geothermal energy

Geothermal energy is an environmentally friendly, renewable power source for the Generation of sustainable electrical power

Free
Message: which will gap up next WGP, NGP, or GTH ? eom
If any of these catch the attention of the mainstream media they have the potential to take off. This would probably be a random event.

I am currently very concerned about the ability of these firms to get the financing necessary for those power plants, or that the financing is available at reasonable rates. All three of these have targets that deserve power plants, and should at least double when those targets start producing power.

With the current failure by the US senate to renew the renewable power production tax credits, the valuation of all of these companies have decreased, with a decreased profit potential if the tax credits are eliminated, but their current targets are capable of supporting profitable production even with the entire cost of the projects being financed at reasonable interest rates.

GTH is the only one of these that has a continuous income stream (from their Raft River and Empire power plants), which will allow them to do reasonably well and continue to move forward on their development targets, without additional external funds.

Given these considerations, WGP or NGP will move when financing is secured for their projects, but probably not before then, unless the proven reserves are significantly increased. GTH might also move in a similar circumstance.

In the longer term these companies will be valued as utilities, which are valued as a multiple of earnings. Under that circumstance all of these are at least doubles based on their current MW potentials.
Share
New Message
Please login to post a reply