Recs: 1 Big investment in production capability coming soon?
Evidence recently out from Evergreen strongly suggests they have plans to upgrade the Ft. Union plant in the near future, AND build a new plant in Indonesia, maybe even something else. Although natural gas prices have come down 30% in the last month, making the existing plant much more economical to operate, I believe Evergreen still has their eye on a larger and more economical coal-fired boiler to supply both the steam and electrical needs of the Ft.Union operation. I would also expect them to upgrade their water treatment facility, and coal coolers.
Sound too far fetched? Just look at recent coal prices and rail transport prices, both of which have never been higher. That's exactly the type of economic environment Evergreen needs to attract their needed investment in production capability.
Think I'm nuts? Well, it looks like they're already hiring another VP and engineer to supervise the Ft. Union plant upgrade work:
jobview.monster.com
jobview.monster.com
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Regardless of what your opinion is regarding this new project, it seems clear that Evergreen believes they are very close to receiving a very large amount of new investment. Some big investment banker, presumably Sumitomo, has done their homework and believes there is money to be made with k-fuel. Upgrading Ft. Union would also likely take far less time to complete than other concurrent plant building operations, providing the fastest route to some healthy cash flow. It all makes good business sense, and the official announcement of this new investment could set off the biggest short squeeze you have ever seen before.
sumitomocorp.co.jp
Still think I'm nuts? Listen to Collins' recent speech at the stockholder's meeting:
evgenergy.com
He clearly mentioned they were working on offtake agreements, and one of the offtakers had already visited the Ft. Union plant. The demand for k-fuel is clearly there; they just need more production capability. Now it looks like this new investment is close at hand. |
