Atlantic Lithium Limited (AIM:ALL, OTCQX:ALLIF, ASX:A11)’s promising assay results at its flagship Ewoyaa project in Ghana provide upside investment potential in the AIM-quoted company, according to analysts at house broker Liberum.
“Our analysis indicates Ewoyaa to be amongst the best in class in terms of returns, operating expense and capital expenditure,” said Liberum.
“We further believe that its primary spodumene product will be amongst the most green available due to the availability of hydropower, no need for hazardous chemicals in processing, existing infrastructure and proximity to port,” added the analysts.
Atlantic is aiming to have an updated resource estimate by early 2023, with production pegged for the third quarter of 2024 pending receipt of a mining licence.
Pointing to a flat spodumene concentrate price of US$1,500 per tonne FOB (let alone at current spot of US$6,110 per tonne), Liberum reiterated its buy rating for ALL shares with a target price of 46p against the current market price of 42p.
ALL shares jumped 4% on Tuesday, bringing the company's market capitalisation to US$254mln.