PHOENIX, Jan. 20 /PRNewswire/ -- Solar Tower developer,
EnviroMission Limited (ASX: EVM) (Pink Sheets: EVOMY), is pleased
to announce it has received an independent valuation of its
Australian Solar Tower technology, associated intellectual property
and development rights at $60,000,000.
The independent valuation was sought to provide a value to the
intellectual property, know how and licenses as they are currently
owned and held by EnviroMission and its subsidiaries as distinct
from the Solar Tower license that has been progressively amortized
and fully impaired in the 2010 annual accounts.
Acuity Technology Management conducted the independent
assessment and placed a value of $60,000,000, on the intellectual property,
development rights and overall commerciality; this valuation will
be referenced in the notes to EnviroMission Limited Consolidated
Half Year Financial Statements, as at December 31, 2010. EnviroMission's
directors will now seek advice on revaluing the Intellectual
Property above its current carrying value in
the balance sheet and will act accordingly.
"This valuation represents an independent assessment of the
value of EnviroMission's enhancements to Solar Tower technology,
new intellectual property, know how and commercial prospects and
outcomes such as the recent Power Purchase Agreement to sell
electricity generated from the proposed Arizona Solar Tower to the
Southern California Public Power Authority (SCPPA)," Roger Davey, EnviroMission Chief Executive
said.
A relief from royalties approach was applied by Acuity
Technology Management that included a probability adjusted net
present value of likely future cash flows, based on revenue
projections supported in the Power Purchase Agreement documentation
with the Southern California Public Power Authority (SCPPA).
Consideration was also given to the prospects for further
Solar Tower facilities using economic modeling that moderated
perceived risks to successful commercial development and project
financing discounted to present value using a discount rate
based on Capital Asset Pricing Model.
"This valuation reflects a current value of the actual
technology that is being commercialized in Arizona for the SCPPA Power Purchase Agreement
(PPA); it reflects the value of the enhancements, research and
development and detailed engineering that has produced intellectual
property and know how to provide greater commercial prospects from
the technologically and economically enhanced Australian Solar
Tower renewable energy technology that is owned by EnviroMission
Limited," Mr. Davey said.
SOURCE EnviroMission Limited
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