Going beyond natural gas and going up in value — (23/06/2021)

• Summary from Breakaway Research

Summary of Valuation Cents/ Sh.

Gas assets 47

Hydrogen assets 16 – 32

Total 63 – 79

TheHydrogen economy has arrived and many companies are working on economicproduction, storage and distribution of emissions-free Hydrogen. Methanecontained in natural gas is a critical input to the most common hydrogenproduction methods, and PH2’s combination of gas ownership and strategies tocapture value-add in conversion of gas to Hydrogen, is unique on the ASX. PH2gas projects alone are undervalued compared to peers, with the Hydrogenbusiness a free option with huge future upside potential. We estimate fairvalue for the gas at 47c, with the hydrogen business potentially separable andworth another $50-100m or 16-32 cps.

Thanks @Dalamar - some real interesting insights here. Does the report put enough emphasis on the hydrogen stuff though? It seems like there's a lot about the gas side of things - working alongside the improving east coast gas market. That being said, can't sneeze at a valuation north of $0.60!

GLTAH