Cypress Development Corp (TSX-V:CYP, OTCQX:CYDVF) could start production from its Clayton Valley lithium asset as early as 2025, analysts at Noble Capital said as they recommended an 'Outperform' rating on the stock.
Located near Silver Peak, Nevada, Cypress plans to mine claystone, produce a high-grade lithium concentrate solution and apply a licensed lithium extraction process to produce lithium concentrate or hydroxide at Clayton Valley.
Analysts at Noble estimate that Cypress could put Clayton Valley into production “as early as 2025” following the completion of a feasibility study by the end of 2022, a two-year permitting period and a one-year construction period.
READ: Cypress Development delivers concentrated lithium solution to two Canada labs for further testing
They added that commercial production could begin in 2026.
“To date, the company has been successful in meeting major milestones,” the analysts wrote in a research note.
“Plenty of catalysts remain on the horizon to move the stock higher. Given the promise of extracting lithium from claystone, we anticipate ample interest from strategic investors as the company affirms its ability to produce a high-grade concentrate, along with lithium carbonate and hydroxide.”
Noble has a price target of US$3.10 or C$3.95 per share on the stock, which is currently trading at around US$0.85 on the OTC markets and C$1.10 on the TSX Venture Exchange.
Cypress is aiming to become a domestic producer of lithium for the growing electric vehicle (EV) and battery storage market.
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