Cypress Development Corp (TSX-V:CYP, OTCQX:CYDVF), which will soon become Century Lithium Corp, is a stock to watch, according to analysts at Noble Capital Markets.
The firm issued an Outperform rating for the stock and a price target of C$3.95 (US$2.95) in a note published Wednesday, highlighting, among other things, the new name. The company traded at C$1.04 Wednesday morning.
“We think the new name will help increase awareness among investors given that it more closely identifies the company with its mission,” the analysts said.
READ: Cypress Development Corp to be renamed as Century Lithium Corp
Additionally, the firm expects a feasibility study to be completed by the end of the second quarter.
“The feasibility study for the Clayton Valley Lithium project is advancing on schedule with completion anticipated by mid-year,” the analysts noted. “On-site infrastructure designs, including mine, processing plant and tailings, and waste storage facilities are completed. Cost and market studies are underway, along with assessments for construction, component lead-time and off-site infrastructure.”
Testing is also ongoing at the company’s pilot plant, which leaches lithium-bearing claystone material to produce concentrated lithium solution using a direct lithium extraction process. Further testing in 2023 is planned to confirm the overall process, optimize the flowsheet, and produce samples of lithium carbonate, the analysts said.
“In our view, Cypress is moving quickly toward affirming the commercial viability of producing lithium carbonate suitable for electric vehicle batteries from Nevada claystone,” the analysts said. “In advance of the feasibility study and permitting, Cypress management is evaluating project financing opportunities and structures.”
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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