Technology Minerals PLC (LSE:TM1) is expected to be profitable from next year, said broker Arden Partners (AIM:ARDN) as it initiated coverage of the battery metals recycling and exploration company with a ‘Buy’ recommendation.
Arden said it expects the company to generate earnings per share of 0.26p in 2023, jumping to 0.44p in 2024 and continuing to rise strongly thereafter.
“Technology Minerals holds its battery exposure through a 49% interest in Recyclus and also offers early-stage exposure to battery critical minerals mining,” the broker said, adding that the company should benefit from the prodigious growth in battery demand.
Recyclus opened its first lead-acid battery recycling centre this year, the first of 10 plants it plans to open over the next six years.
READ: Technology Minerals hails opening of first battery recycling centre
Arden set a target price of 7p per share.
“We believe that proof in operation of the Recyclus business should see a significantly higher price with more to come from other valuation uplifts we have not quantified.”
The shares were up 7.4% at 4p in mid-morning trading.