Atlantic Lithium Limited (AIM:ALL, OTCQX:ALLIF, ASX:A11) received a repeat 'buy' rating with a 46p price target from analysts at 'house' broker Liberum Capital following a recent update.
The analysts noted that the latest batch of drill assays from the company's "best-in-class Ewoyaa spodumene lithium project in Ghana included multiple broad, high-grade infill and exploration intercepts, providing still further confidence both in resource conversion and in extending mineralisation."
They said: "Noting that our valuation would be 66p/share at a flat spodumene concentrate (6% Li2O, ‘SC6’) price of US$1,500/t FOB (let alone at current spot of c.US$6,100/t, or the c.US$8,000/t SC6-Eq recently achieved by Pilbara Minerals), we reiterate our BUY rating."
Atlantic Lithium on Wednesday reported the highest grade to date from its completed resource and exploration drilling programme at its flagship Ewoyaa lithium project in Ghana.
It intersected 4.52% lithium oxide (Li2O) over 1 metre (m), including an adjacent 1m interval of 3.99% Li2O, in infill drilling at the Ewoyaa Main deposit.
Atlantic Lithium said it is targeting a resource upgrade at the end of 2022 or early 2023, dependent on lab turn-around time, which will inform a definitive feasibility study, targeted for completion in mid-2023.