Clear Capital Markets give a fresh near-term target price for the stock of 26p
Mast Energy Developments (LON:MAST), the UK-based developer of natural gas power plants, which featured in February’s UK Investor Magazine conference, today gave an operational update on its site development pipeline.
Upgraded Output Expectations
When Mast was set to IPO in mid-April, it said that its expected power output would be around 20MW within 6 months, while it was likely to increase as acquisitions were completed and visibility improved. On Thursday, Mast confirmed that its power output expectations are now between 54-58 MW.
MW 300 Power Capacity a Step Closer
Mast previously set a power generation target of 300 MW, which now looks achievable, according to Clear Capital Markets, the London-based wealth manager. Mast’s near-term probable capacity has risen sharply, while the company is in talks with additional developers with site capacities totalling a further 166 MWs.
Valuation and Recommendation
Clear Capital Markets believes that MED is “well positioned” to benefit from the changing UK power generation landscape while today’s announcement “further strengthens this position”. MED’s negotiation of an off take agreement for all the power it can supply for the next 15 years, reinforces this view according to the wealth management company.
MED listed on 14 April 2021 at 12.5p per share with a near term power generation expectation of 20MW. MED’s expectations have now risen to 54-58MW, along with a further potential 166MW coming down the track.
This is indicative of the management team’s industry expertise in Clear Capital Market’s view. Given all of the above, Clear Capital Markets gave a fresh near-term target price for the stock of 26p and reiterated its Buy recommendation.
Louis Coetzee, Non-Executive Chairman shared her delight that the company’s successful IPO and its ability to deliver on targets set out in the company’s prospectus. “We are, in particular, pleased with the fact that we remain confident that all the projects identified in the company’s working capital budget, as stated in the Company Prospectus, can be delivered within the said budget,” Coetzee said.
While Paul Venter, chief executive of Mast Energy Developments, analysed the company’s outlook.
“MED’s executive management and project team on the ground are experienced operators with a track record capable to deliver tangible outcomes based on experience in multiple jurisdictions. The building blocks of the platform and launching pad to achieve MED’s operational and commercial success in future are in place and MED’s team can now get on with the task in hand.”
“Having raised and received £5.54 million with key institutions and retail investors who have recognised the opportunity, we now look forward towards successful delivery of the projects in our project pipeline and imminent revenue generation.”
