Analysts at corporate broker Liberum have reiterated Atlantic Lithium Limited (AIM:ALL, OTCQX:ALLIF, ASX:A11)’s buy rating despite a downgraded share price target of 35p.
The price downgrade was due to delays in product commencement and lower production guidance for 2025 and 2026, though the price target still represents 42% upside against the publication price of 25p.
Liberum noted that the definitive feasibility study (DFS) on Atlantic’s “exciting” Ewoyaa spodumene lithium project envisages production of around 300 kilotonnes per annum of spodumene concentrate (SC) over 12 years.
Assuming a relatively conservative free-on-board price of US$1,587 per tonne of SC, Ewoyaa’s post-tax net present value is estimated at US$1.5bn.
Liberum also views Atlantic’s financing and commercial risks as “significantly reduced” due to its agreements with Piedmont Lithium.
Piedmont holds a 9.4% interest in Atlantic, with an option to acquire up to a 50% stake in the company’s lithium properties.
The deal also includes an offtake agreement covering half of Atlantic’s annual lithium production, on a life-of-mine basis at market prices.