ALKHF - Alaska Hydro Corporation

Discussion in 'Stock picks and trading strategies' started by goldismyfriend, Dec 2, 2020.

  1. Alaska Hydro signs LOI with KOWEPO for due diligence

    2020-12-02 11:32 MT - News Release

    Mr. Cliff Grandison reports

    ALASKA HYDRO PROVIDES UPDATE

    Alaska Hydro Corp. has provided an update on the company's activities. He reported the receipt of a Letter of Intent from Korea Western Power Co., Ltd. (KOWEPO), a wholly owned subsidiary of Korea Electric Power Corporation (KEPCO) to conduct due diligence on Alaska Hydro's More Creek hydroelectric Project. KEPCO is the principal supplier of electricity in Korea and is a publically listed company on both Korea stack exchange and the NYSE

    The non-binding Letter of Intent expressed a desire to become a partner and outlined a requested list of information to conduct due diligence on which to make their decision. No specific terms of for investment or partnership are motioned

    The Company is providing all available information.

    Mr. Grandison also reported the signing of a Success Fee Agreement with Hahn Renewable Energy LLC. This agreement has stated Performance Goals for the sale and/or financing of the More Creek Project. Compensation is based on successful conclusion of financing or sale. Hahn Renewable Energy is a private company registered in California.

    Both KOWEPO and Hahn Renewable Energy LLC are arms length companies to Alaska Hydro Power Corporation

    The More Creek Project is a 75 MW hydroelectric storage dam and generator on More Creek in northwest British Columbia. The project is in the environmental review process required for an Environmental Assessment Certificate from both the federal and provincial environmental agencies.

    The Company has completed a prefeasibility study and will prepare a feasibility study to coincide with the filing of the Environmental Application for an Environmental Assessment l Certificate. A Phase 1 Feasibility Study which provides a high level of confidence in the project metrics is being considered.

    Funds for the Feasibility Study and Environmental Assessment are being pursued and the foregoing mentioned Success Agreement is a focused effort to raise funds.

    We seek Safe Harbor.
     
  2. Some additional information below pertaining to the project. News release clearly says it has a NPV of $155 million US dollars.

    http://www.alaskahydro.com/project/more-creek.php

    https://www.alaskahydro.com/pdf/NR/AKH NR Sep 6 2018.pdf

    ALASKA HYDRO UPDATE ON MORE CREEK HYDRO ELECTRIC PROJECT September 6, 2018 – Vancouver, British Columbia – Cliff Grandison, President of Alaska Hydro Corp. (the Company), TSX:AKH, announced that the Company's consultant, Sigma Engineering has completed a revision to its 75 MW More Creek hydroelectric project Prefeasibility Study. The revisions have been made to include the diversion of water from the Forrest Kerr water shed into the More Creek watershed. The Forrest Kerr Creek is approximately 2.5 km west of the south arm of More Creek and the proposed diversion would be approximately 25 km upstream of its confluence with the Iskut River. Water in excess of 3.7 m3 /s or approximately 21.36 m3 /s of the mean annual flow will be diverted to More Creek and increase annual generation from 345 GWh to 448 GWh and revenue potential from $34.5 million to $44.8 million, an increase of 30%. Total construction cost is expected to increase from $ 191,247,020 to $242,223,320. The rate of return or IRR is estimated to be 33.61% and the Net Present Value at a 10% discount rate is estimated to be $154,924,278. The financial result of the revised prefeasibility study confirms that the More Creek project is financially robust and will be subjected to a full feasibility study with the revised design criteria. The More Creek project is in both the federal CEAA environmental assessment process and the BC EAO environmental assessment process. The Forrest Kerr diversion will require an amendment to the project description and every effort will be made to continue with the environmental assessments without being setback by the design change. The More Creek storage dam and generator will not require any design change to handle the increased flow resulting from the diversion from Forrest Kerr Creek. The Company is seeking joint venture partners to take the project through the engineering and permitting stage. For further information, please contact: Cliff Grandison, President (604) 929-3961
     
  3. Small caps in the hydro electric space aren't that common on the TSX, but I was able to find a comparable company that's also in BC and already producing, but only a fraction of the MW.

    SYITF - $10 million market cap
    - 40 million shares, trades at $0.24
    - $15 million in debt/liabilities
    - Produces 11MW or $300,000 revenue per quarter

    ALKHF - $4.4 million market cap
    - 44 million shares, trades at $0.10
    - no debt, clean balance sheet
    - JV with large cap NYSE company
    - Project to produce 75MW or an estimated $2.1 million revenue per quarter
     

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