Thursday, July 3, 2025

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.

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