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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 2018.

Stock data

Market cap.A$79.2m
Last closeA$0.18
High / Low (52 weeks)A$0.2 / A$0.1
Stock market listingAU
Forecast net cash (A$m)1
Forecast gearing ratio (%)N/A
TeamResources - Oil & Gas
SectorOil & Gas

Price performance

%1m3m12m
Actual12.9(12.5)66.7
Relative *11.1(18.2)51.7

* % Relative to local index

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Company news

Y/E Jun Revenue (A$m) EBITDA (A$m) PBT (A$m) EPS (c) P/E (x) P/CF (x)
2016A 0.0 (5.4) (5.4) (2.0) N/A N/A
2017A 0.0 (6.2) (6.2) (1.9) N/A N/A
2018E 0.0 (6.2) (6.2) (1.5) N/A N/A
2019E 0.0 (6.2) (6.3) 0.2 87.5 72.8

Last updated on 25/06/2018

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. In June 2018, LCK completed a A$8.7m capital raise which will enable the company to complete the feasibility study for the small-scale power plant and the project associated drilling programme. Following this capital raise our forecasts are currently under review.

Last updated on 29/06/2018

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. The above-ground plant construction has been recently approved by the regulator.

Last updated on 29/06/2018

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
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