Atlantic Lithium receives 'buy' rating and price target with 25% premium - Liberum
The lithium price the company used in its PFS was well below the spot price at the time
Company
LON:ALL
Atlantic Lithium Ltd is a lithium-focused exploration and development company advancing its flagship Ewoyaa Project in Ghana, West Africa to production. Ewoyaa is a 36.8Mt @ 1.24% Li₂O spodumene pegmatite resource on track to become Ghana’s first lithium mine. The project is funded under a co-development agreement with Piedmont Lithium and benefits from governmental support, exceptional local infrastructure and close proximity to potential off-takers, underlying the project economics.
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The lithium price the company used in its PFS was well below the spot price at the time
Company is in an excellent position to advance Ewoyaa through studies to reach production
The City broker's analysts noted that the Ewoyaa PFS envisages production of 255,000 tonnes per annum (tpa) of spodumene concentrate grading 6% Li2O (SC6) over 12.5 years
Net present value is US$1.33bn over a 12.5-year mine life, the company said unveiling a new pre-feasibility study
Offer was fully subscribed, with a listing date pegged for late September
Ewoyaa is on track to become Ghana's first lithium producing mine
"Our ongoing exploration programme demonstrates considerable scope for resource growth and the potential for an extended mine life," said interim chief executive Lennard Kolff
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“We feel that listing on the ASX is timely, therefore, to enable a more favourable valuation of the company and its assets," said chairman Neil Herbert
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SP Angel . Morning View . Monday 27 06 22Base Metals prices hold remarkably strong levels despite negative headlinesCLICK FOR PDFMiFID II exempt information – see disclaimer below LON:ALL* – CEO presentation on the Ewoyaa projectLON:JAY* –
The high-grade intersections were from a new target at Grasscutter North
AIM-traded Atlantic Lithium is looking to develop Ewoyaa into West Africa's first lithium mine
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Atlantic Lithium has been approached by Ghana’s Minerals Income Investment Fund about a potential investment
The development of Ewoyaa is being funded by Autralian-listed Piedmont Lithium
The conference will be held at the Cape Town International Convention Centre from 9-12 May
Herbert said: "The company is at a critical stage of its transition from explorer to developer and producer.
“This demonstrates the true untapped value potential that the Ewoyaa Project offers,” said chairman Neil Herbert
Drilling has comfortably extended mine life to over 12 years, said the statement
Kolff, currently the company's COO, has over 25 years of experience in the mining industry