Wednesday, May 7, 2025

Latest

Haywood Slashes Pieridae Energy Price Target After LNG Project Goes Bust, CFO Leaves

On July 2, Pieridae Energy (TSX: PEA) announced that they would be effectively suspending their LNG project. This comes after the company could not meet all of the key conditions necessary to make the final investment. The stock dropped more than 24% following the news.

Then, on July 5th, the company announced that their CFO, Rob Dargewitcz, had resigned effective July 30th. Management is now assessing options and strategic alternatives to make an LNG Project more compatible with the current environment. They note that the departure didn’t come from “any issues or disagreements regarding Pieridae’s financial disclosures or accounting policies and practices.”

The company currently only has one analyst who covers the name, with that being Haywood Capital Markets. Following this weeks events, they lowered both their price target and rating from C$0.90 and Buy to C$0.55 and Hold. Their analyst says they see a downside case of $0.20 based on 2020e EV/DACF on 2.0x strip pricing.

Haywood gives some additional insight into the pause of Goldboro. They say that management noted that the estimated costs were materially higher than the originally stated $10 billion/$1000 per tonne. This led to the company not financing the project internally, and their search for a partner turned up nothing.

Haywood now believes that the companies balance sheet is the biggest issue. They say that the “steady growth in accounts payable to $112 million and a looming $50 million deferral fee” raises their concerns for Pieridae to service these obligations.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Finland-Estonia Baltic Sea Infrastructure Compromised: Deliberate Damage Suspected

A subsea gas pipeline and a telecommunications cable connecting Finland to Estonia via the Baltic...

Tuesday, October 10, 2023, 01:37:00 PM

Green Thumb: Despite Earnings Beat, Analysts Lower Targets On Sector Headwinds

On August 3, Green Thumb Industries (CSE: GTII) reported its second quarter financial results. The...

Saturday, August 6, 2022, 05:18:00 PM

Village Farms: Analyst Consensus Points To Positive Q2 EBITDA Of $1.31 Million

Village Farms International, Inc. (TSX: VFF) announced that they will be reporting their second quarter...

Saturday, August 7, 2021, 01:16:00 PM

WeCommerce: Canaccord Lowers Price Target Following Marketing Meetings

Over the last few weeks, Canaccord hosted a number of marketing meetings for WeCommerce (TSXV:...

Wednesday, February 2, 2022, 04:04:00 PM

Bright Minds: Eight Capital Assigns $11.50 Price Target To Firm

Last week, Eight Capital launched coverage on a basket of psychedelic companies. This comes after...

Monday, September 20, 2021, 10:09:00 AM