News
Sep 04, 2009Jacob Securities Inc. - NGP 1-Year Price Target: $1.95
CanGEA member, Jacob Securities Inc., announces that Nevada Geothermal Power (TSXV: NGP) should receive an ITC Cash Grant of $60million from the U.S. Treasury before the year ends. The grant is being paid by the US Recovery Act - this act requires 30% of capital expenditures to be paid towards renewable power projects.
Jacob Securities Inc. believe that NGP should increase in the next few months due to the following stimulants:
- Blue Mountain I goes online this month growing from 30 MW to 40 MW net by the year’s end.
- At 47 MW net output by 2010, Blue Mountain I should show an annualized run rate of $33million revenue and $26million EBITDA.
- The ITC Cash Grant of $60 million (no strings attached). In addition, $7.2million will be granted in 2010.
- The $180million 14% bridge facility will be refinanced down to $70million with 8% money.
The combined grant of $67.2million, almost matching NGP’s market cap, will allow the amount of drilling to increase substantially thereby preventing much of share dilution. Due to these awarded grants, Blue Mountain II, Pumpernickle, Crump, and Black Warrior are able to increase development in the hopes of successfully implementing well production in 2010.
About Jacob Securities:
Jacob Securities Inc. is an independent investment bank providing underwriting and financial advisory services to companies in the renewable power, infrastructure, energy and mining sectors. The firm, which is headquartered in Toronto, primarily services small to mid-cap issuers in North America and around the world.
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