Nevada Geothermal Power Inc V.NGP

NGP comments From Matt Gowing Research Cap.

[articsun55]

Some pretty positive  comments on NGP by Matt Gowing.  .

Capital’s Gowing Initiates on Nevada Geothermal (NGLPF.OB) with BUY Rating

Jan 12, 2010
Author: SCP Editor

January 12, 2010 – Analyst Comments – Research Capital’s Matt Gowing initiated coverage this morning on Nevada Geothermal (NGLPF.OB), rating the stock at BUY with a $1.50 price target.

Key Takeaways

·         As a power producer (not just a developer) NGP can claim cash flow from projects (recently completed 49.5MW Blue Mountain Faulkner-1.

·         NGP’s properties are more advanced than average, resulting in higher ‘conviction level with respect to the company’s ability to affect its growth plan”

·         Near-term catalyst include closing of $95 million John Hancock debt financing and completion of 20MW drilling expansion program at Blue Mountain, as well as tax credits which could be worth
.66 per NGP share·         High visibility in pipeline should result in 6-year capacity growth CAGR 23% out to F2016

·         Initiating coverage with BUY rating and C$1.50 target price (based on taking average of DCF/NAV intrinsic value of C$1.30 and EV/EBITDA derived target of C$1.70.