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$44.9m
Last closeA$0.14
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
Actual22.73.8(12.9)
Relative *22.34.8(16)

* % 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 0.0 N/A (17.7) 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 10/08/2017

Investment summary

Leigh Creek Energy’s pre-commercial demonstration (PCD) continues to show progress, with funding now in place from China New Energy (CNE) and major construction contracts awarded and fabrication underway. The third and final tranche of funding of A$12.5m is due to settle after a shareholder vote later this quarter while regulatory approvals remain on the critical path in order for LCK to meet a late 2017 first gas target. Our RENAV remains at $0.26/share post equity dilution. We continue to risk our valuation with a subjective 20% chance of commercial success – we expect to revise this risking on completion of the demonstration project.

Last updated on 10/08/2017

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. South Australia was the hardest hit state when energy retailers increased pricing by up to 20% in June 2017.

Last updated on 03/08/2017

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