Clean Global Energy Limited (
"We've said for some time now that our share price has been undervalued, when you take into account the significant achievements we've delivered in just over a year of operations and the enormous commercial success coming down our projects pipeline," Mr Harkins said.
"Mr Wendt's report lends weight to that view on a couple of key points, including strong potential investment returns from our push into North America with Fortune 500 US energy multinational, the AES Corporation (
The report states financial modelling of the Oklahoma Energy Project indicates strong potential investment returns for two stages of growth following establishment of an initial UCG Syngas pilot plant.
"The annual net income in Year 1 after taking into account administration, depreciation and insurance is a healthy US$11.8 million and US$18.2 million respectively."
The report continues: "Development to full capacity, supplying Syngas for a 300MW plant, sees an NPV of US$140.8 million, IRR of 20.4% and payback of 9 years on investment of US$140 million."
Another key point for Mr Wendt's buy recommendation is the binding Heads of Agreement to provide US$20 billion Indian energy major, Essar (
The report's summary concludes: "Accordingly, we believe that Clean Global Energy is a stock to watch. The company represents a fabulous opportunity for investors to gain exposure to the world's burgeoning demand for cleaner energy, utilising the company's in-house skill base and growing alliance with major energy companies in two of the world's biggest energy-consuming nations. Furthermore, the company's modest market value means it is highly leveraged to future commercial success."
"Mr Wendt's positive outlook for the future of CGE is a welcome external critique of the commercial momentum being created in the company, and an early indicator that the business plan being pursued by the Board now has the real potential to deliver increasing shareholder value in the short to medium term through the exciting developments in the US and Indian energy markets," Mr Harkins concluded.
Full report at: http://www.cleanglobalenergy.com.au/analystreports.php
About Clean Global Energy Limited
ContactMr. John Harkins
Chairman and CEO
Clean Global Energy Limited
Link: Clean Global Energy Limited (ASX:CGV) Received 12 cent Buy Recommendation From Minelife Analyst