DESCRIPTION: Ram Power Corp. is in the business of developing, owning and operating clean, sustainable, renewable geothermal energy projects in North and South America. Currently, the company is operating a 10MW facility in Nicaragua on the San Jacinto-Tizate site (SJT-I) with another project (72MW SJT-II) under construction and backed by power purchase agreements. With a pipeline of projects totaling 634MW in the U.S. (California and Nevada), Nicaragua and Canada (B.C.) for future development, Ram Power's goal is to become a world leader in geothermal power production.
The information provided below is based on the most recent information we have received from analysts, newsletters and other contributors to Streetwise Reports' The Gold Report or The Energy Report. We encourage you to visit the company's web site and call the company for more specifics on this company before you decide to invest.
"Ram. . .has a 32 MW project in Nicaragua that will come online in the second quarter of 2011, which will immediately provide them with an increase in their top and bottom lines. . .They're going to bring an additional 32 MWs online, meaning the company will be generating 72 MWs in total by the end of 2011. . .
The Ram Power management team has significant experience in the space and has a number of people working for them who were formerly with Ormat Technologies. The Ram team has numerous projects that they're developing right now, which, as I said, are slated to come online in 2011. They also have a number of properties in the U.S. that they're developing and recently announced that they were going to acquire Sierra Geothermal Power Corp. . .It's a nice acquisition for both companies because Sierra was having trouble raising the funds needed to continue development, and Ram has a much stronger balance sheet and the ability to access capital markets to develop those projects. I think the combination of the two is going to be positive. . .Their projects are all advancing on time and on budget. . .We rate Ram Power a Buy with a $4.50 price target."
View Entire Article: Peasgood Preaches Patience on Geothermals
John McIlveen, Jacob & Company Securities, Inc.
(08/30/10)
"Given the capital constraints of the current market, we looked at the as is values for four geothermals. As is means what can the company accomplish with cash on hand, thereby not going to market for new equity. We further included only those projects where production well drilling has begun. The following companies are considered: Ram Power, Magma Energy, Nevada Geothermal and US Geothermal.
Ram has three projects where production well drilling has begun and more than enough cash to complete them. The peak EBITDA year is 2013 when all three are online and that drives a per share price of $6.32 for a three-year CAGR of 42%.
. . .All these companies have worthwhile project pipelines and are constrained only by cash. Ram is an exception as it still has US$136.5M remaining in 2013 to advance its other projects and, as such, may warrant a higher multiple if growth exceeds 25%. Ram starts our scenario with cash of US$92M on June 30 2010, spends US$60M on San Jacinto, Geysers and Orita and gets back US$105M in ITC grants on Geysers and Orita. This makes Ram our top pick within the geothermals."
The Energy Report Interview with MacMurray Whale (08/24/10)
"Ram is a geothermal power developer. It has huge potential upside because they have a lot of resources that have been identified and some that they're drilling out. What sets them apart, and this is very important in power development, is their capital resources. They have a very strong balance sheet, and they're developing in areas, and in ways that will allow them to meet deadlines for the investment tax credit in the U.S. That's hugely important because that allows them to leverage their balance sheet.
. . .[Ram is] pursuing this acquisition of Sierra Geothermal Power, which is very interesting because Sierra brings projects that are adjacent to Ram's properties, yet they're further advanced. By merging the two, not only does Ram have a project that will meet the ITC deadline, but it also has a power agreement for it. To me, that is astute project management and development that goes well beyond drilling. . .There's a different experience level with management at that firm, which is why we like that company. A lot of drilling results are coming out in the last half of 2010 that should be real catalysts for the stock. This isn't something that should take five years; it has the potential to double quickly."
View Entire Article: MacMurray Whale: Find Energy Catalysts, Find Growth
Sean Peasgood, Wellington West Capital Markets
(08/16/10)
"We estimate Ram Power's un-risked NAV to be near C$12.26 per fully diluted, fully financed share based on the company's prospects for geothermal power operations in the Americas. We continue to have a positive view on the macro fundamentals for geothermal energy given its green energy attributes, base load nature and competitive levelized cost vs. other energy sources. Specifically in the Western U.S., there is a strong appetite for geothermal power given state-enacted Renewable Portfolio Standards (RPS), which mandate certain levels of electricity required to be delivered from renewable sources by a future date. In addition, with an increasing concern about U.S. energy security, geothermal offers a highly reliable, low-cost resource that is not reliant on imported fossil fuels.
We reiterate a Buy rating with a C$4.50 target. RPG's shares are attractive at 0.5x FDFF risked NAV and 0.2x FDFF unrisked NAV. We expect the stock to advance as RPG advances projects."
Rick Rule, HRN Interview (07/13/10)
"Ram Power Corp. . .is a leader. Sierra Geothermal, I think, has made the right decision to amalgamate with Ram Power because Ram's management team has the skill set to attract institutional capital."
PRINT THIS PAGE
EMAIL THIS PAGE
