The Energy Report
Notable Quotes
"With the LOI signed, we urge investors to bolster positions in FCU." (12/22/15) Fission Uranium Corp. - David Sadowski, Raymond James More >
"FCU is taking the right steps regardless of whether PLS is ultimately acquired or developed into a mine." (12/22/15) Fission Uranium Corp. - Heiko Ihle, Rodman & Renshaw More >
"I am quite excited about POE in 2016." (12/16/15) Pan Orient Energy Corp. - Chen Lin, What Is Chen Buying? What Is Chen Selling? More >
"BKX's Oklahoma asset has significant value." (12/16/15) BNK Petroleum Inc. - Michael Charlton, iA Securities More >
"EFR is one of the few companies in a position to write long-term sales contracts and deliver into them at several times its current production rate." (12/17/15) Energy Fuels Inc. - The Gold Report Interview with Eric Coffin More >
AAV: Growth Ahead
|
ROBERT FITZMARTYN, First Energy Capital
(10/19/2010)
“Trades at 4.6x 2011e CFPS (6.5x group average), 5.8x 2011e EV/DACF (6.9x group average) and 0.7x 2011e NAV (0.9x group average) – too steep a discount for one of the better growth stories and one of the better balance sheets to fund that growth. We estimate 22% production per share growth over the next year (2010e vs. 2011e) and for it to only be 45% drawn on its bank lines at year-end 2011e (i.e., $288 million in bank line room). Growth is economic even at lower gas prices (e.g., 36% IRR under $4.00/mcf AECO) and should extend materially beyond 2011 owing to 500 estimated Upper Montney locations at Glacier. Each 50 mmcf/d phase (similar to phase III, which is currently ramping up) requires only 25-30 initial wells and then seven to 10 wells/year thereafter to sustain production at that level for a not insignificant $2.65/share in value. Other multizone potential includes the Lower Montney and Nikanassin over these lands.” |
PRINT THIS PAGE
EMAIL THIS PAGE
Under SEC rules, analysts are required to disclose their interest in securities that they cover. We strongly encourage you to contact them to understand any potential conflicts of interest they may have.
More Experts
"FCU's deal with CGN helps to financially and technically derisk PLS." (12/21/15) Fission Uranium Corp. - David Talbot, More >
"NXE is our top pick across all commodities." (12/22/15) NexGen Energy Ltd. - The Energy Report Interview with Rob Chang More >
"FCU will continue to explore and add pounds to what is already a world-class project." (12/22/15) Fission Uranium Corp. - The Energy Report Interview with Rob Chang More >
"EFR is well positioned to benefit from higher uranium prices." (12/22/15) Energy Fuels Inc. - The Energy Report Interview with Rob Chang More >
"FCU intends to sell $82M or 19.9% of the company to CGN Mining." (12/22/15) Fission Uranium Corp. - Jeb Handwerger, Gold Stock Trades More >