Original-Research: Zefiro Methane Corp. - from GBC AG
Classification of GBC AG to Zefiro Methane Corp.
Share issue successfully completed; project pipeline of US$40 million confirmed The largest individual contract within the government-funded project pipeline is the previously announced three-year agreement with the Ohio Department of Natural Resources (ODNR), valued at USD 19.6 million, under which approximately 200 oil and gas wells in Ohio are to be plugged and abandoned. This is complemented by the USD 11.5 million contract announced in September 2026 and awarded by an environmental protection agency in the Great Lakes region, with a planned project duration from November 2026 to June 2029. Other previously announced contracts include projects valued at USD 2.4 million and approximately USD 1.9 million. In addition, Zefiro has now disclosed three further projects in Ohio for the first time, with an aggregate value of approximately USD 5.0 million, covering a total of 48 wells. The previously communicated extensive project pipeline has thus been quantified more clearly for the first time and, in our view, provides significantly enhanced revenue visibility over several financial years. In addition, Zefiro has been awarded a so-called Exploratory Contract by the ODNR for work in southeastern Ohio. These preliminary activities include the assessment and preparation of well sites before a separate contract for the actual plugging and abandonment work is awarded. Zefiro is thus expanding its range of services to include an additional stage of the remediation process, while also opening up a further potential revenue stream. The specific contract value has not yet been disclosed. We have incorporated the recent capital increase into our otherwise unchanged DCF valuation model, resulting in a new price target of USD 1.42 (previously: USD 1.50). The increase in liquidity is offset by a dilution effect, which is further amplified by the additional warrants issued (valued using the Black-Scholes model). Based on the current share price of USD 0.45, we continue to see significant upside potential. We therefore maintain our BUY rating. You can download the research here: 20261028_Zefiro_Comment_engl Contact for questions: GBC AG Halderstrasse 27 86150 Augsburg 0821 / 241133 0 research@gbc-ag.de ++++++++++++++++ Disclosure of potential conflicts of interest pursuant to Section 85 of the German Securities Trading Act (WpHG) and Article 20 of the Market Abuse Regulation (MAR) The following potential conflict of interest exists in relation to the company analysed above: (5a,11); A list of potential conflicts of interest can be found at: https://www.gbc-ag.de/de/Offenlegung Note on issuer-sponsored research: This research report is issuer-sponsored research and has been prepared in accordance with the EU Code of Conduct for issuer-sponsored research. +++++++++++++++ Completion: 28/10/2026 (8:13 am) First distribution: 28/10/2026 (10:00 am) The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. | ||||||||||||||||||
2423442 28.10.2026 CET/CEST
