Leigh Creek Energy (LCK)

Business description

Leigh Creek Energy has a certified PRMS gas resource of 2,964PJ (2C) at the Leigh Creek Energy Project in South Australia. Monetisation of this gas through ISG is expected to be de-risked by a demonstration programme in 2017.

Stock data

Market cap.A$25m
Last closeA$0.11
High / Low (52 weeks)A$0.2 / A$0.1
Stock market listingAU
Forecast net cash (A$m)10.7
Forecast gearing ratio (%)N/A
TeamResources - Oil & Gas
SectorOil & Gas

Price performance

%1m3m12m
Actual(15.4)(45)(15.4)
Relative *(14.8)(44.6)(23.3)

* % Relative to local index

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Y/E Jun Revenue (A$m) EBITDA (A$m) PBT (A$m) EPS (c) P/E (x) P/CF (x)
2015A N/A N/A N/A N/A N/A N/A
2016A 0.0 (5.4) (5.4) (2.0) N/A N/A
2017E 0.0 (3.0) (2.9) (0.7) N/A N/A
2018E 0.0 (3.0) (2.9) (0.7) N/A N/A

Last updated on 24/05/2017

Latest research

Investment summary

Leigh Creek Energy (LCK) offers an option over the in-situ gasification (ISG) of an underground coal resource in South Australia (SA). Recent power blackouts in SA have highlighted the need for more baseload power generation capacity, while high electricity prices incentivise the monetisation of 2,964PJ of 2C ISG gas resource. On 31 March 2017, LCK announced that it had raised A$21.85m of new equity; net proceeds are to be used to fund the company’s pre-commercial ISG demonstration project. A new cornerstone investor has also been added to LCK’s shareholder register, China New Energy. Our RENAV of $0.26/share reflects this new source of funding.

Last updated on 01/06/2017

Industry outlook

South Australian power prices have been volatile due to concentrated generator ownership, coal plant closures, limited import capability and higher than national average dominance of renewables. Gas prices have risen as a result, benefiting LCK.

Last updated on 01/06/2017

Key management

Phil Staveley, CEO
Mark Terry, CFO
Justin Haines, Chief operating officer
Justyn Peters, Executive chairman

Company address

PO Box 12
Rundle Mall
Adelaide
5000
Australia
+61 (8) 8132 9100
View website