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 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."
Sean Peasgood, Wellington West Capital Markets
(06/24/10)
"RPG purchases 421-acre property for undisclosed cash sum. The property is adjacent to RPG's Geysers project and has three tested production wells that can support half the 25–35MW required for Geysers.
The transaction eliminates Ram's need to pay royalties at Geysers. RPG has improved the economics of the project and strengthened the negotiation position with third party operators for a potential steam sale.
We continue to believe RPG favors selling the steam. Selling the steam would provide RPG with recurring revenue and no associated capex and expenses. We believe large operators are interested.
Reiterating Buy rating and C$4.50 price target. RPG's shares are attractive at 0.5x FDFF risked NAV. Next catalysts for the shares are the potential steam sale at Geysers and development at SJT."
Ian Tharp, Dundee Capital Markets
(06/24/10)
"Ram announced today the purchase of Mayacamas Energy LLC, which owns 421 acres of land that is contiguous to Ram's Geysers geothermal project in N. California. The new land parcel has existing production wells, a combined production capacity of over ~15 net MW and further exploration potential. This is a positive development for Ram as it provides the company with additional flexibility for the commercial development of the Geysers project.
Small Purchase Has Big Impact: More Flexibility on Realizing [Geysers] Value Ram has acquired 421 acres of land contiguous to its Geysers geothermal project through the purchase of Mayacamas Energy LLC. Purchase terms were not disclosed, but we understand that the purchase was paid for by cash.
We reiterate our BUY rating and 12-month price target of C$4.50 for Ram Power."
The Energy Report Interview with Adrian Day (06/15/10)
"Ram Power is a small company, but they are the largest of the juniors. That's really important; in the geothermal space, you really have to have scale to grow. . .the costs are pretty heavy at the early stage of exploration; but, once the thing's in production, the capital costs, and, in particular, the operating costs, tend to be very, very low indeed. . .and, of course, once you've done the exploration in the U.S., you can get some grants back from the government to help reduce your costs. [The company] has strong entrepreneurial management and is growing.
Ram has just made an all-stock offer for a small geothermal company called Sierra Geothermal Power Corp. Sierra has a very good pipeline of about 14 projects in the U.S., a very good pipeline. . .so Ram has a wonderful deal by buying these things very, very cheaply, and it has the capital to pursue them. So, yes, I like [RAM] very much."
View Entire Article: Adrian Day: Wanna Go 'Green'? Go Geothermal
Canaccord Capital, Morning Coffee
(06/01/10)
"A steamy match. Ram Power signed a letter of intent to acquire Sierra Geothermal in a share-swap deal worth about $28.4 million. The transaction, which combines two geothermal power exploration companies, comes as a continuation of the consolidation trend in the green energy sector, according to Reuters. The proposed share exchange has Sierra shareholders receiving 1 common share of Ram Power for every 12 common shares of Sierra. According to this ratio, Ram Power is implying an offer price of $0.213 per share for Sierra, an 18.5% premium to its closing price of $0.18 on May 28, 2010. The transaction has 'full support' from Sierra management and Ram Power is 'very pleased' with the letter of intent, as well. The parties expect to enter into definitive agreements regarding the transaction towards the end of June 2010."
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