Analysts at Liberum Capital have placed their 149p target price for Atlantic Lithium Ltd under review while they revise their model for the company following news on the Pre-Feasibility Study (PFS) for the Ewoyaa lithium project in Ghana.
The City broker's analysts noted that the Ewoyaa PFS envisages production of 255,000 tonnes per annum (tpa) of spodumene concentrate grading 6% Li2O (SC6) over 12.5 years.
READ: Atlantic Lithium predicts Ewoyaa mine will pay for itself in five months
They pointed out that post-tax NPV8% was estimated at US$1.33bn, and IRR at 224% - on capex of US$125mln - assuming an average SC6 price of US$1,359 per tonne FOB - spot is around US$5,310 per tonne CIF.
The analysts noted: "First production could occur in Q3 CY24, if the Mining Licence is received in Q3 CY23."
Liberum reiterated a 'Buy' rating on Atlantic Lithium.