Canaccord Genuity lowers Atlantic Lithium target price but stays at 'speculative buy'

Atlantic Lithium Limited NPV (DI)

11.89p

17:00 05/11/24

0.76%

0.09p

Canaccord Genuity lowered its target price for Atlantic Lithium's shares from 90.0p to 80.0p following the release of the miner's Definitive Feasibility Study for its Ewoyaa project.

FTSE AIM All-Share

736.29

16:50 05/11/24

n/a

Industrial Metals & Mining

6,334.35

16:59 05/11/24

0.38%

24.27

All in all, they judged the DFS positively, saying that it confirmed Ewoyaa's "excellent economics" as a low-cost capital intensive asset.

It also clearly laid out the early revenue opportunity that it offered.

However, it was possible that investors might be "slightly" disappointed by the higher unit costs projected in the same.

The miner was now anticipating all-in sustaining costs of $610 per tonne, up from $460 a tonne previously.

Even so, they pointed out how Ewoyaa still represented some of the "strongest" upside versus peers at 0.37 times price-to-net present value.

The broker kept its 'speculative buy' recommendation on the shares.

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