Arise Technologies Signs First Polysilicon Contract

Arise Technologies Corp.'s (APVNF.PK) new agreement with Sino-American Silicon Inc. to sell 120 tonnes of 7N+ polysilicon, is the Arise's first polysilicon sales contract to date, but according to Fraser Mackenzie analyst John Safrance, it won't be the last.

Arise will supply SAS with 40 tonnes of silicon per year from 2011 to 2013. While not disclosed, Mr. Safrance believes prices will range between C$55 to C$65 per kilogram, resulting in revenues of C$6.6-million on the low end, with gross margins of approximately $3.6-million over the length of the contract. Arise also completed a second three-year agreement to transfer 280 tonnes of 7N+ poly to SAS who will produce solar wafers for Arise, who in turn will use them to manufacture photovoltaic cells.

In a note to clients the analyst said:

This is very positive news for ARISE. While the agreement is financially immaterial, we believe  it will be followed by additional, larger contracts in the months to come.

Mr. Safrance told clients that Arise's share price should move in step with additional contracts as they are struck.  He has a "strong buy" rating and C$5 price target.

Arise shares jumped 16% to C$1.96 on Thursday, following the word of the SAS contract.

Comments

[tessant:]

i havent heard of this one before; i will put it on the radar...

scott
-solarfeeds

2008 Jun 16 06:42 PM