Still got a long way to go to reach its all time high. |
Over one pound possible today at this rate |
Zilch stock |
A reminder, 3 weeks ago,.."ATOME PLC (AIM:ATOM) has had a 200p price target reiterated by broker Liberum following its latest update.Highlights of the first half of the year so far are the US$2.5 million placing in February/March 2024 and the new shareholder facility in place, completion of the FEED Study, EPC partners appointed and talks on terms for the offtake of all production from the Villeta project.ATOME is targeting to finalise project finance funding for Villeta and to start construction by the end of H2/24, which is a key catalyst for the shares notes the broker, which has also retained a 'buy' recommendation."https://www.proactiveinvestors.co.uk/companies/news/1050936/atome-energy-retains-punchy-target-after-recent-progress-1050936.html |
Great news. |
This should really move 100p plus.. |
A bit of PR :- |
Excellent news (at last) |
"The entry into this strategic relationship with global crop nutrition leader Yara is a significant milestone for ATOME on the path to realise our flagship Villeta Project which will be one of the largest renewable fertiliser production facilities in the Western Hemisphere. Proving significant off-taker interest for our renewable product gives a clear path to the finalisation of funding, FID and the commencement of work onsite at Villeta." |
That is major news! |
RNS: Offtake heads of terms signed with Yara for 100% of Villeta Project production |
Correct me if I am wrong but given the likely structure of the SPV Atome will not own them all |
Have you missed the carbon credits revenue out of 500,000 which will generate about $46-54 million? |
The company have a targeted sales price of $410 per tonne as per the investor presentation at the end of May. production cost are in the region of $180.
This gives a profit of $230 per tonne before financing costs.
During the earnings call it was stated the project should be able to support 60% debt with a 40% equity investor.
The project cost is $460 million. ($275 debt, $185 from an equity investor). The IDB and other finance institutions charge a preferential rate on loans. Interest would hopefully be in the region of 6.5%.
This would give a finance cost of $18 million.
Therefore I think the total profits from Villeta will come in at $42.5 million per year.
The only question then is the ownership percentage between atome and the equity investors. |
pjohn: I googled CAN prices. I suspect I got an old price.
Because of your timely post pj I have rechecked and this link:
This tells me the price is 350-400 euros per tonne.
So my $206mn becomes about $99mn at the centre price of 375 euros. I've kept it simple and made 1$ = 1 Euro.
Thanks pjohn1985 for your pointer. |
Where did you get $780 a tonne from ? thats way way north of the mark. |
That's a lot of dosh! |
Clickable Link:
Thanks for the pointer Barony.
Key points (for me) is breaking ground later this year. The six month delay is excused by their attempts to minimise costs in a inflationary period.
Mussat explained that they aim to produce 264,000 tonnes of fertiliser per year at Villetta. The Brazil/Argentina/Paraguay market is 30mn tonnes per year. He believes therefore that they have a ready market in South America irrespective of any 'Green' price premium that may be obtained in Europe.
A quick check shows the price of CAN to be about $780 a metric tonne in Europe. Their production per year therefore would generate about $206mn at current EU sale price. |
This is well worth watching, from Investors meet companies:-
hxxps://youtu.be/kZzWJ-XO8pM?si=oCE2JPa3oU1VYQJJ |
Decent investor presentation. Hopefully project kicks on end 24 and production in 27 if I understood correctly. |
Another big buy from Schroder. When are we going to see final plans and shovels in the ground? |
Dake1: I'm still looking for justification for the rude comment you made in post 728. I'm never offended by rude comments Dake, but I am offended by a lack of intelligence.
Do you think £10mn is too low a figure or too high? The 100,000 hours is irrefutable as it's quoted in the RNS. I'm ex I.T. and recall what I charged per hour even 25 years ago.
EDIT 7June: I'm guessing your silence Dake1 implies your comment in 728 was unjustified. |
I note that today they are talking about production start up in 2027.
In their Feb 14 24 RNS announcing the fund raise they referred to start of full production in 2026. |
I'll accept that may be the case Dake1 - but your enlightenment will be appreciated.
To help, the 100,000 hours of engineering work I have costed at £100 per hour on average. I'm not an engineer.
tia. |
MC you are out to lunch on your math |
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