SP Angel has reinforced its confidence in Atome Energy plc, highlighting the company's notable strides in the green energy sector, particularly the significant progress in its Paraguayan operations.
“The management team at ATOME have moved quickly in the first 24 months since the Company’s IPO to add tangible value to the project pipeline,” said analysts.
They were optimistic that the front-end engineering and design (FEED) study on the Phase-1 Villeta project in Paraguay is nearing completion.
Following this, the subsequent key valuation catalysts for investors will be to secure financing and achieve a final investment decision, which SP Angel expects by the end of the current quarter.
SP Angel determined that the Villeta development, led by AECOM and focused on delivering a lump sum fixed price turnkey contract, has lowered risks while “increasing its bankability for potential debt providers”.
Furthermore, the project financing for Villeta has received overwhelming interest, being two times oversubscribed. This response, primarily from development finance institutions and international lenders, signals strong confidence in the project's financial prospects.
Another critical development for Atome is its advancement in negotiations for the offtake of its green Calcium Ammonium Nitrate (CAN) fertiliser, which is expected to significantly reduce carbon footprints.
This product is particularly appealing in the global markets due to its environmental benefits and potential to command a pricing premium.
SP Angel reiterated its buy rating and a target price of 200p against a 70.8p publication price.