Q: What is your opinion of the future of Cielo Waste Solutions. Is it worth holding on to at this time. Thanks for the advice.
5i Research Answer:
CMC has identified a pipeline of projects with ranging timelines. The Carseland Expansion Project is the nearest term, with construction forecasted from 2024-2026 and potential revenues of $19M and EBITDA of $9M in the first full year of production. The Dunmore Project has a construction forecast from 2025-2027 with revenue of $79M and EBITDA of $46M in the first full year of production. With no revenue and negative cash flows it will be sometime until investors can see earnings from CMC. Holding CMC is very speculative and risky which we would not recommend at this time. More capital is going to be needed and we think buyers will have lots of time here.