Atlantic Lithium’s confirmation that the Definitive Feasibility Study (DFS) at the Ewoyaa spodumene lithium project in Ghana is progressing well, and on track for release in a few months is reassuring, said Liberum.
The DFS will evaluate increased throughput, and the broker’s current target price of 56p (previously 57p) is based on an expanded 3Mtpa DFS case.
Liberum added its target would be 78p/share at a flat spodumene concentrate (6% Li2O) price of US$1,500/t let alone at the current spot of US$5,110/t.
“The recent weakness in the shares, therefore, presents an attractive entry opportunity”, added the broker, which reiterated its 'buy' stance.
Shares rose 0.6% to 25.5p on a very tough day in London.