Out of the renewable and ‘green’ energy companies on the ASX, this is one that grabbed my attention.
I am quite interested in the whole renewable energy sector, both from an investment potential and personal curiosity point of view. While I believe that more sustainable energy solutions are necessary (and possibly inevitable in the distant future) it is a difficult environment for most companies to turn a significant profit in the current market. While a lot of the other green energy companies I looked at were relying on technological advancement, public grants and a major shift in Aus & world energy markets, I got the feeling that EHR has the potential to profit in the current environment.
Their Copahue, Argentina geothermal project is looking good with a recent upgrade to resource, an EIA and Concept Study completed. There are still a few years until they are expecting power generation (and revenue) but it’s an interesting project. They also have exposure to African and Australian markets and are not limiting themselves to renewable energy options with coal bed methane interests in South Australia.
While I always read valuations with a hefty dose of salt, they have been given a price target of above 20c by RB Milestone and 30-70c by Arrowhead. These are probably a little generous but I do believe they have a significantly lower risk profile compared to other geothermal and renewable plays.
This (and possibly CWE if they can get a commercial project up and running) is currently the ‘green’ play in my portfolio, and one I am keenly following for news while they develop their projects.
I’d be interested to see anyone else’s opinion of EHR or a comparison to other ‘new/green/renewable’ energy companies (particularly geothermals)???
cheers, tremmas
