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 Post subject: FINANCING A LFTR
PostPosted: Feb 24, 2014 4:01 pm 
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Joined: Jun 05, 2011 6:59 pm
Posts: 1335
Location: NoOPWA
I've been talking off and on with my broker about setting up a "Life Cycle" mutual fund that has as a final goal the purchase of a LFTR at <$5/W. The fund would be set up so that it was a retirement type fund and difficult to remove money from until the life (or goal) of the fund had been reached.

Thoughts?

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 Post subject: Re: FINANCING A LFTR
PostPosted: Feb 25, 2014 11:39 pm 
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Joined: Dec 29, 2011 10:14 am
Posts: 217
You are not getting much feedback but one issue would have to be the regulatory requirements and licensing (and the related fees.) It is an unpredictable world today and investment likes to minimize risks.


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 Post subject: Re: FINANCING A LFTR
PostPosted: Feb 27, 2014 3:52 am 
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rc1111 wrote:
You are not getting much feedback but one issue would have to be the regulatory requirements and licensing (and the related fees.) It is an unpredictable world today and investment likes to minimize risks.
I see no real risk. A mutual fund pays a reasonable rate of return, normally, and there would be no purchase of LFTR stock, just a purchase of a LFTR when it is available at the right price.

Investors want to know there are customers for the product. This provides a ready made customer.

I think I would insist on a lower price rebate guarantee on that $5/kW so that if the price of subsequent units were substantially lower, we would get a pro-rata rebate.

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 Post subject: Re: FINANCING A LFTR
PostPosted: Feb 27, 2014 1:37 pm 
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...........what would be the costs in time and money to have a LFTR design brought out, completed, and sent to the NRC for review/approval?

how long would NRC take to complete approval?

What is the market for this reactor? Who will get sued if there is an issue?

What is the rate of return over 10 years if everything goes good? ( i understand engineers want an accurate estimate, but business types lower all rate of return numbers " to adjust them properly")

How much ownership over the design and patent is available for the shareholders?


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 Post subject: Re: FINANCING A LFTR
PostPosted: Feb 27, 2014 4:50 pm 
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Joined: Feb 28, 2011 10:10 am
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Have you also thought of REITs (Real Estate Investment Trusts) ? These are entities in the U.S. which can invest in real estate and pass most of the income directly to the investors. "Real Estate" can be something of a misnomer, because there are also dedicated REITs which only invest in energy infrastructure. For example: http://pwreit.com/ . The REIT could possibly enter into lease agreements with LFTR/MSRs operators (Flibe Energy, Transatomic ?) to operate the power plant, lessening the need for capital on part of the operator.

However, I am quite pessimistic about the future of MSRs in the U.S., because of the institutional resistance by the NRC and the non-proliferationista's in U.S. Congress.


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 Post subject: Re: FINANCING A LFTR
PostPosted: Feb 27, 2014 9:06 pm 
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Joined: May 24, 2009 4:42 am
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Location: Calgary, Alberta
I've heard of wealthy investors clubbing together to buy a plane and then leasing it out to airlines on term charters. I can see scope for creating a specific company to partner in the construction and ownership of a specific MSR power station. One partner can provide the technology, technical, construction and operational oversight, the other stumps up with the capital, or most of it, but contributes little else. Both partners enjoy the profits, once operational.

For the most part it would be like buying a high yielding bond, putting up the money at the front end and receiving regular payments, year after year after year.

This all sounds really nice, but it presupposes that you have a mature MSR product fully licensed with no special requirements, no special risks. That's not going to happen for a very long time, and in some markets, perhaps never.


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