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  1. #16
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    I have e-mailed the Executive Director Simon Kidston what he believes the keys to driving equity values are. His reply word for word is as follows:

    __________________________________________________ _______________________________
    Thanks for your feedback. Capex is important, however the key to driving equity value is order is:
    - Revenue contracts. The Qld government awarded Genex a really good contract for the solar project. We anticipate Government or a major energy retailer will consider something similar for the hydro. If we achieve that, we anticipate share price re-rating because it will enable majority of capital costs to be debt funded

    - Grant funding. ARENA focus now is storage , so we hope to secure grant for the hydro project

    - Minimising equity dilution by finding the right project partner to fund capex

    - Capex - always an important issue. We are comfortable with the capex but we decided to approach the market to get proper tender pricing (not just an estimate from a consultant)

    Michael Addison and I are significant shareholders, so we are very focused on delivering this project in a way that makes shareholders money.
    cheers
    Simon

    <end of reply>

  2. #17
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    Highlights from todays announcement:

    Project finance credit approval received for up to AUD$110 million
    ARENA grant funding agreement executed
    Project construction program to commence
    On target for first generation from Kidston Solar in Q4 2017

  3. #18
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    Thanks silu, esp for the previous post.

  4. #19
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    And with that lovely opening GNX has become my second biggest shareholding across all markets. Long may it continue.

  5. #20
    Senior Member Dej's Avatar
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    Quote Originally Posted by silu View Post
    And with that lovely opening GNX has become my second biggest shareholding across all markets. Long may it continue.
    Jinx - It is my second largest as well.

    Just the beginning!

  6. #21
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    Trading Halt for a material capital raise. Must be for the Pumped Hydro project?

  7. #22
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    To reach financial close on Kidston Solar Project Phase One 50MW (KSP1)
    • To continue the development of the Kidston 250MW Pumped Storage Hydro Project (“KPSHP”)
    • To advance the development of the Kidston Phase Two Solar Project (“KSP2”)
    • To provide general working capital"

  8. #23
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    Gawd I'm miffed about this capital raising. Timing, pricing. How on earth did they do another one at a much bigger discount than the one just done in December? I would have expected one capital raise for each stage of their 3 projects.
    Last edited by silu; 01-02-2017 at 03:37 PM.

  9. #24
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    Don't get me wrong - over the long run I'm sure us holders will be richly rewarded - but it is a really bad look for those who bought this on IPO and/or have participated in December's raise.

  10. #25
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    Reply from Simon Kidston about my e-mail:
    I understand, the timing and pricing is regrettable. The background is we pushed very hard to finalise the key contracts and lending documents prior to Christmas , but unfortunately we were not able to finalise them until very recently. In the meantime, the bond rate / interest rates have increased sharply . By way of example, in early December, the rate to hedge our debt for 10 years was 4.1%. Today the same 10 year hedge is 4.7%. The impact is less project debt which means more equity. We aim for Financial Close (the time we draw on the debt and hedge the rates) late next week . However, on a positive note, work has commenced on site and so there is no delay to our construction timetable

    regards

    Simon Kidston | Executive Director

  11. #26
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    $5 mill to Instos and $3 mill offered to shareholders @ 16c. As Dej says a 55% discount over 2 months. SPP in Dec was at 27c and s/p dropped to 22c. Still watching from the side atp but i guess the s/p may well drop close to 16c.Dilution plus.

  12. #27
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    Hi Silu and others,

    I've had GNX on my watchlist for a while now and followed this thread from time to time. I'm finally having a good look at the company. I would be interested in your numbers, in particular the $100 Million debt, how do they plan to pay this off? do you know the interest charges? do you have details about the lending - I cant find much.

    According to my conservative calculations revenue from solar will be between 10-12 million/year, with Op expenses of 2.3 million/year, however there will be around 3-4 million of other expenses as the continue to work on the hydro/ second solar (before CAPEX)

    Thanks
    Matt

  13. #28
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    Of interest, here is where I got some numbers from http://reneweconomy.com.au/large-sca...stralia-54829/

  14. #29
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    Hi NZSilver,
    Sorry only got limited time today. Have you had a chance to read the Cannacord Research http://www.genexpower.com.au/uploads...-_nov_2016.pdf
    Lots of your questions are answered in their notes.

  15. #30
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    Thanks Silu, that was useful. Also one of my questions was where they would find water to re-fill their reservoir - I read through prospectus and it was interesting to read the dam that has a gravity feed line and the water rights. It would be interesting to have a bit more detail why they went for the 250MW capacity vs greater.

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