EnviroMission Ltd. (EVOMY)

[tykundegex]

Thought about this investment:

Firstly, unlike many OTC stocks I consider EVOMY to be a buy & hold (long) kinda stock.

The company has the exclusive world-wide rights to the Solar Tower/Chimney technology (except China), which is a huge asset if this technology is adopted on even a modest scale. A single 200MW tower is expected to run 365 days/year at produce at least 100MW on average. That equals 876 million kWh in a year. If the feed-in rate they get is $0.12/kWh (source: http://www.scppa.org/Downloads/RFP/RenewableEnergyProjects013111final.pdf ), then that's $105m of power revenue per year per tower.

What is not clear (to me) is whether EVM plans to own & operate these towers at all, or merely license the technology to third parties. I believe, at least for the SCPPA deal and with the 2 AZ towers, that they intend to at least partially own them.

The funding needed to construct a 200MW tower could be as much as $1b according to some sources (http://www.livescience.com/technology/080702-pf-solar-tower.html), but I believe it has come down in the past years. The operational costs are very very low -- only moving parts are the turbines which are at ground level.

What's clear is that with 370m shares issued, the company is valued (today) at $24m, which leaves a LOT of upside if they are able to successfully commercialize or license this technology!

If I get more information about the financial model & EVMs specific business model w/r to commercialization, I'll post here.

Ty