Liberum has reiterated its 'buy' rating on Atlantic Lithium Ltd (AIM:ALL, OTCQX:ALLIF, ASX:A11) stock after the group unveiled a maiden JORC 2012-compliant feldspar resource estimate at its Ewoyaa spodumene lithium project in Ghana.
The estimate stands at 15.7 million tonnes at a concentration of 40.2% feldspar.
“Encouragingly, the bulk of the resource was in the higher-confidence measured and indicated categories,” said Liberum.
Interestingly, the June 2023 definitive feasibility study (DFS) for the lithium aspect of the project did not account for the newly revealed feldspar credits.
However, Liberum has incorporated these credits into its analysis and valuation, signalling a potentially greater financial upside for Atlantic Lithium.
Liberum’s Atlantic Lithium price target is 39p, suggesting a 49% upside against the 26.1p publication price.