Century Lithium Corp. (TSX-V:LCE, OTCQX:CYDVF), the owner of the Angel Island lithium project in Nevada, is poised to benefit from the inevitable upturn in lithium demand and pricing, analysts at Noble Capital Markets believe.
“Angel Island is one of a few advanced lithium projects being developed in the United States to provide an end-to-end process to produce battery-grade lithium,” analysts wrote.
“While near-term lithium prices remain depressed, we think Angel Island, which could go into production in 2028 or 2029, may be poised to benefit from an inevitable upturn in lithium demand and pricing.”
The analysts noted that an internal optimization study recently identified potential cost savings of up to 25%, equating to $395.2 million, for the project's Phase I capital expenditures, originally estimated at $1.58 billion.
Additional cost reductions may apply to subsequent production phases. An updated feasibility study incorporating these improvements is expected by year-end.
If the updated feasibility study confirms these savings, the project's economics could improve significantly, Noble’s analysts highlighted.
“Management is optimistic that the optimization of Angel Island’s mining plan and processing, along with the sale of surplus sodium hydroxide generated during the production process, could lead to both lower estimated capital and operating costs,” they wrote.
Noble awarded Century Lithium an ‘Outperform’ rating and a $2.30 price target, implying upside of about 667% from its share price at the time of writing.