Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Neo Lithium is Canaccord's top pick among lithium developers; lifts target price

% of readers think this story is Fact. Add your two cents.


Broker Canaccord Genuity has hiked its price target on Neo Lithium Corp (CVE:NLC) (OTCQX:NTTHF) (FRA:NE2) to C$4.20 from C$3.40 previously following news the company had improved the purity of the battery-grade lithium carbonate produced at its pilot plant.

The company, which is advancing its 3Q project in Argentina, said on Tuesday that the carbonate now met worldwide premium specifications and was very close to electric vehicle (EV) battery giant and its 8% shareholder Contemporary Amperex Technology Co Ltd’s (CATL) high standards.

READ: Neo Lithium produces improved battery-grade lithium carbonate from its pilot plant

“Our target price is now based on 1.0x NAV, measured as at January 1, 2022. We have increased our multiple (from 0.8x) to reflect current trading ranges as well as the improved likelihood that NLC produces battery grade lithium carbonate that is in line with CATL’s product quality specifications. We believe this will have positive implications for ongoing project financing discussions,” noted Canaccord analyst Katie Lachapelle.

The firm is on track to deliver a definitive feasibility study this year, she added, which should “better position the company to advance financing discussions with strategic investor CATL and move the project towards a final investment decision”.

An improved processing method, first announced in March last year, has now led to the uplift of purity to 99.797% from 99.599%, Neo Lithium noted yesterday.

Lachapelle said that this improved process is expected to decrease both operating and capital costs, while minimizing reagent, water and power consumption.

“Neo Lithium continues to trade below peers at 0.89x NAV, versus peers at 1.0x. We expect NLC’s shares to re-rate over 2021, with a number of potential de-risking catalysts on deck, including the receipt of final construction permits (imminent), completion of a DFS (Q3 2021), and a potential partnership/financing agreement (discussions ongoing),” the analyst said.

Canaccord rates the stock a ‘Speculative Buy’.

Contact the author at [email protected]

Story by ProactiveInvestors



Source: http://www.proactiveinvestors.com/companies/news/939025/neo-lithium-is-canaccord-s-top-pick-among-lithium-developers-lifts-target-price-939025.html


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse
Loading...

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.