Canaccord Genuity initiates coverage on CleanTech Lithium at 'speculative buy'

Canaccord said the Northern Chile focussed company's Laguna Verde and Francisco Basin sites could be "standout assets" within the sector and expects Laguna Verde's resources to underpin a 30+ year life.

The Canadian bank stated that due to a lack of evaporation ponds, existing infrastructure and prefabrication of large plant components, it estimates low capital intensity of approximately $16,000 per tonne, with operating costs of $4,000 per tonne, while investment returns were predicted to be "rapid", with a fast ramp-up and strong margins underpinning approximately $150.0m-200.om in free cash flow per year from the first year of operation.

"DLE allows the company to minimise aquifer depletion, with a smaller geographical footprint than conventional evaporation brines, and the availability of renewable power should allow the company to pursue a target of close-to-zero emissions," noted Canaccord.

"There are also no indigenous communities within ~2 hours of the area. We believe these ESG credentials bode well for permitting at a time when the Chilean government has a strong focus on sustainability," added the analysts.

Reporting by Iain Gilbert at Sharecast.com