@Gordon Gekko,

Eddie calculated income revenue from one of the three Cogen processes.The 'profit' from the yet to be constructed ethanol plant,would exceed profit realised by many listed companies in the NSE........It is plain obvious that 670M is not little money especially given that MSC has been making peanuts out of molasses.........Carbon credits is an element of power generation which will be pegged at 100-120M per year.


God gives,mugikuyu takes.

Something wrong?

NSC grows sugar cane; squeezes the (sweet) juice out; dries the cane in the sun; burns it to get fir for steam boilers; passes steam to turbines to generate elec.

Now,what was the main product,again?

Wasn't it the 'sweet' in the cane juice?

Oh,if you din't know,MSC has not paid any elect bill for many years past!

In my view,their future lies in development of more efficient 'sweet' extraction process...then we can buy their sugar for 30-bob per kg at the shop...like the one from Brazil or Sudan

@Hi-Lo;

what is the website address?

Having looked at the figures again,my mind has changed....in my language they say that it is only fools who don't change their mind (No irimu itaugukagwo)...

Here we go:

The PPA with KPLC provides for 26MW at the rate of US$0.06 per kWh as long as the plant availability is above 85%.

Now this works out to about a billion bob in revenue per year...in a company whose turnover is sh12b

Might sound a little,but if the running costs and the finance costs for the power plant are not too high,this may make a significant impact on the bottom line. Assume it is 50% of revenue; then the PBT increases by sh500m...or sh350m PAT....0.23 increase on EPS...
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YES @Virji,all things remaining constant,it's a good buy at 4.30....I'll call my broker right away!!!!

@ guka

for the power generation,something is not adding up....

consider this:

MSC crushes 1 ton of cane to produce 100 to 150kwh of electricity,simultaneously with the power alcohol and the cane sap

MSC crushes 350 tons per hour meaning that it takes 0.0029 hours (1/350) or 10.3 seconds to crash 1 ton.

power generated from 1 ton of crashed cane is 100kwh/0.0029 = 35,000kw = 35MW

In one year assuming continuous duty operation MSC would crash 350x24x365 = 3,066,000 tons.

Annual power generated 3,066,000x35MW = 107,310,000MW = 107,310GW

this is equivalent to 270 nuclear power plants combined!!!


NEVER TALK OF A RHINO IF THERE IS NO TREE NEAREBY - ZULU PROVERB