REC recently announced two new partnerships, together providing Moses Lake with more than sufficient utilization to justify a restart. The final decision will be made next year, which could trigger first production around year-end 2022. A utilization level of ~90% is clearly within reach by 2025, which could push REC’s annual EBITDA above USD 130m. Through a probability weighted scenario analysis, we arrive at a new TP of NOK 19 (3.5), and hence upgrade to Buy.
