"Speculative Buy Rating" HOPE, N.J.--(Business Wire)-- Mithra Research, LLC, has initiated coverage of White Energy Company Limited, a Sydney-based company creating a diversified resource group with unique mining technology capabilities (ASX:WEC), with a "speculative buy rating." Mithra has set an initial target price of A$5.85 for the common stock and US$27 for the American Depository Receipts over a 12-18 month timeframe, both increases of more than 100%.
Judy Tanselle, President of White Energy USA, the American subsidiary of White Energy Company Limited, said, "This is a very significant and gratifying development as it demonstrates the higher profile White Energy has been building for itself in the US. We believe that we have an investment story that seizes on the realities of the current energy market. America can break its dependence on imported foreign oil by using coal, which the US has in abundance, in many of its power plants. In order to do so, though, cleaner coal will be required to protect the environment in the 21st century. White Energy's patented coal upgrading technology can make cleaner coal a reality, and the Mithra report on White Energy details quite accurately the opportunities available to us."
Gary Goldstein, President of Mithra Research, said, "Our report focuses on several factors that we believe justify our speculative buy rating. There is a global market opportunity given that coal is the fastest growing source of energy, and White Energy's technology offers tremendous economics, which can transform $5-$12/ton brown or sub-bituminous coal to have energy characteristics of $50-$80/ton bituminous coal.
"White is at the cusp of commercialization, and it enjoys world-class support from partners like Bayan Resources, BHP Billiton Limited and others. The "White Coal" BCB process is wholly a mechanical one, requiring low energy intensity in the production of an upgraded binderless briquette: existing competing technologies have not yet met the test of commercialization or are "chemical" and use a binding agent. Additionally, the company's commercial plants have modular designs and are highly scalable. We believe that this will result in both energy and environmental benefits, and given their large sub-bituminous deposits, White Energy's technology could materially benefit especially the US and Chinese coal markets.
To obtain a copy of the report, e-mail [email protected]. For further info contact Gary Goldstein, Mithra Research LLC, 201-401-9360.
WEC Price at posting:
$1.92 Sentiment: Buy Disclosure: Held
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