Leigh Creek Energy

AU: LCK

AU$54m market cap

AU$0.11 last close

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 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 October 2018, LCK announced first syngas from its pre-commercial demonstration. Successful gas flow provides initial validation of the LCK gasification process and ability to operate in a safe manner. We expect to further de-risk our A$0.34/share on delivery of sustained flow rates over 60- to 90-day.

Y/E Jun
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 0.0 (5.7) (5.8) (2.1) N/A N/A
2018A 0.0 (5.9) (6.0) (1.5) N/A N/A
2019E 2.8 (3.1) (3.4) 0.8 13.1 N/A
2020E 5.8 (0.7) (0.7) (0.1) N/A N/A
Last updated on 15/01/2019
Sector
Oil & gas
Share price graph
Balance sheet
Forecast net cash (A$m) 9.4
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (27.6) (51.2) 12.9
Relative* (29.5) (49.7) 19.6
52-week high/low A$0.2/A$0.1
*% relative to local index
Key management
Phil Staveley CEO
Mark Terry CFO
Justin Haines Chief operating officer
Justyn Peters Executive chairman

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