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 late 2017.

Stock data

Market cap.A$40.8m
Last closeA$0.10
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(14.8)(27.4)(24.6)
Relative *(14.6)(31.4)(30.6)

* % Relative to local index

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Company news

Leigh Creek Energy Ltd gets ready to raise

Fri, 22 Apr 2016 00:45:06 GMT

Leigh Creek Energy Ltd drilling ahead at gasification project

Mon, 04 Jul 2016 23:59:46 GMT

Leigh Creek Energy Ltd (ASX:LCK) Board Strengthened

Wed, 06 Dec 2017 00:22:30 GMT

Leigh Creek Energy Ltd (MRTDF) Tranche 4 Complete – AUD$10m Received from ...

Fri, 27 Oct 2017 05:16:11 GMT

Leigh Creek Energy Ltd (ASX:LCK) Chairman's Address to Shareholders and ...

Tue, 28 Nov 2017 22:30:00 GMT

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 20/10/2017

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 02/11/2017

Industry outlook

SA power prices have been volatile due to concentrated generator ownership, coal plant closures, limited import capability and higher than national average dominance of renewables. SA was the hardest hit state when energy retailers increased pricing by up to 20% in June 2017.

Last updated on 02/11/2017

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