Zefiro Methane Corp. (von GBC AG): BUY 28.10.2026, 10:00 Uhr von dpa-AFX Jetzt kommentieren: 0

Original-Research: Zefiro Methane Corp. - from GBC AG



28.10.2026 / 10:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.



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Classification of GBC AG to Zefiro Methane Corp.



     Company Name:                Zefiro Methane Corp.
     ISIN:                        CA98926D1069



     Reason for the research:     Research Comment
     Recommendation:              BUY
     Target price:                USD 1.42
     Target price on sight of:    30.06.2027
     Last rating change:
     Analyst:                     Cosmin Filker, Matthias Greiffenberger



Share issue successfully completed; project pipeline of US$40 million
confirmed



Zefiro Methane Corp. has successfully completed a capital increase with
gross proceeds of approximately CAD 5.0 million. As part of the transaction,
a total of 7.58 million units were placed at an issue price of CAD 0.66 per
unit. Each unit consists of one common share and one-half of a warrant.
After deducting placement-related finder's fees of CAD 0.30 million, the
company is expected to have received net proceeds of approximately CAD 4.70
million (USD 3.35 million). At the end of the 2025/26 financial year (30
June 2026), cash and cash equivalents amounted to USD 1.09 million, meaning
that the company's liquidity position has now improved significantly. The
proceeds are primarily intended for general corporate purposes and to
strengthen working capital. In addition, a portion of the funds may be used
for strategic acquisitions.



Zefiro recently disclosed the aggregate value of its already awarded
government-funded well-plugging projects for the first time. Accordingly,
the current government backlog amounts to approximately USD 40 million, with
the underlying projects extending through June 2029. Approximately USD 4.9
million of this backlog is expected to be executed in the current second
quarter of the 2026/27 financial year. The remaining approximately USD 34.6
million is expected to be recognised as revenue primarily during calendar
years 2027 and 2028. Importantly, the reported backlog exclusively comprises
government-funded projects. Projects for private oil and gas operators are
not included due to their typically much shorter lead times and therefore
represent additional revenue potential.



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:
https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&u=45e156d655130a920e567e9f3c47d37a



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)



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2423442 28.10.2026 CET/CEST