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 >
NGP: Ormat Steps in as JV Partner
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SEAN PEASGOOD, Wellington West Capital Markets
(11/30/2010)
"Closure of the John Hancock loan facility, a $10M private placement and a recent JV with Ormat increases our confidence in NGP's ability to fund developmental projects. The company plans to increase power production at the Faulkner 1 plant to 43 MW (net) from 37 MW (net) and a recent JV with Ormat is expected to bring a 30 MW plant online at Crump Geyser by 2013. Rapid advancement of exploratory and development activities across existing projects are catalysts that could help maintain the positive momentum in the stock. Finally, interest expense should begin to decline following the increased debt weighting towards the $98.5 million loan facility with John Hancock at 4.14% interest rate. This interest rate is 70% lower than the cost of the $164M TCW loan, which was reduced to $85.8M by the JH facility subsequent to quarter end. We reiterate our Speculative Buy rating and CAD$0.90 target. Our target implies 1.0x risked NAV and 0.7x our unrisked NAV. As NGP advances projects and continues to successfully set up financing, we expect the stock to eventually approach our unrisked NAV of CAD$1.32 per share." |
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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
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