Century Lithium Corp. (TSX-V:LCE, OTCQX:CYDVF) shares trading around $0.71 offer an “attractive entry point for investors,” analysts at Noble Capital wrote in a note to clients as they maintained an ‘Outperform’ rating and US$2.95 price target on the stock.
The analysts noted that the company has received a provisional patent protecting its proprietary system for lithium extraction that “reflects innovations developed at its lithium extraction facility or pilot plant.”
The patent pending system is based on the extraction of lithium from solids using both products of a chlor-alkali process: hydrochloric acid and sodium hydroxide.
Under the provisional patent, Century Lithium’s protected IP includes the method of treating lithium-bearing solids with chloride solution and the handling of solutions, precipitates, and residues, exclusive of a lithium recovery stage (direct lithium extraction) a component process proprietary to Koch Technology Solutions.
The analysts said the company has successfully repeated steps from test mining through to the manufacture of battery-grade lithium carbonate with consistent purity levels. It expects to complete a feasibility study at its Clayton Valley Lithium Project in Nevada by year-end 2023.
“Through its work, Century has developed an innovative process which we think differentiates the Clayton Valley Lithium Project from others,” the analysts wrote.
“With the provisional patent, the company's intellectual property will be safeguarded and enhance the value of the project. With significant catalysts on the horizon, we think the current share price offers an attractive entry point for investors.”
Contact the author at stephen.gunnion@proactiveinvestors.com