Pinnacle Activity Ticker
Nuclear Plant Funding
I have been asked many times how do you expect to fund a multi billion dollar company on literaly pennies. So to answer the question per AEHI the funding comes in phases.
Phase 1 requires about $ 100 million to pay for land, water, engineers, lawyers, local applications and NRC approval(COLA) to get the plant site approved at the local and federal levels. This takes about 4-5 years and is generally funded by investors for unregulated companiessuch as AEHI or consumer rate increases for regulated utilities building new nuclear plants.
Phase 2 is after local and NRC approval in which the ~$ 100 million investment creates a piece of approved for a nuclear plant real estate worth~1.5 billion dollars . This is the asset that is used to borrow the $5 to 8 billion to construct and operate the nuclear power plant. No loan payments are expected untill the plant is operating creating about $3 billion per year in profit reliably for 60 years.... making it an attractive loan for most financial institutions.
US regulated utilities are somewhat more constrained as they are generally required to borrow domestically ... unregulated companies like AEHI are not so constrained and actually may be better positioned to find financing in this current economy from international sources. Hence, the strong push by regulated utilities to get the US government to provide loan gurantees to help shore up our shaky financial institutions.
There is no downside to any state or county in this process as many jobs are created and local economies benifit in all phases.
For our investors, we have a ~$ 1.5 billion asset after phase 1 and ~$ 10 billion asset after phase 2. In either case, it is very profitable for our investors.
So I hope this information from the company helps, and which end would you like to buy in on?