Leigh Creek Energy - Environmental approvals de-risk LCEP

Leigh Creek Energy (LCK) has received statement of environmental objectives (SEO) approval for the pre-commercial demonstration (PCD) phase of the Leigh Creek Energy Project (LCEP) and important de-risking milestone ahead of commencing process well drilling, plant construction and operation. LCK will now submit activity notifications (ANs) to advise the regulator of specific activities to be carried out under the SEO. Accordingly, we de-risk our valuation for LCEP from a 20% commercial chance of success (COS) to 30%. Our base case valuation rises from A$0.26/share to A$0.38/share (+46%). A successful PCD, permitting and funding for full-field development would significantly de-risk LCEP.