Neometals Ltd (ASX:NMT) has received an Outperform rating from Macquarie Wealth Management, with a A$0.55 per share target price. The company last traded at $0.47.
The following is an extract from Macquarie's latest Global Lithium Report.
Macquarie noted:
We see NMT’s Mt Marion project as the largest and lowest risk new addition to hard rock lithium supply.
The mine is expected to produce ~200,000tpa of 6% spodumene concentrate and should account for around 50% of the current Lithium Carbonate Equivalent (LCE) shortfall.
NMT is a minority partner (26.9%) in the Mt Marion Joint Venture.
The project is being constructed by Mineral Resources under a BOO contract and life-of-mine off-take has been secured with China’s second largest lithium producer, Ganfeng Lithium which is also the majority equity partner and off-taker.
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