Piedmont Lithium’s Africa partner makes major upgrade to its mineral resource: Piedmont can earn-in up to 50%
A major upgrade to Atlantic Lithium's mineral resource could see further broker upgrades to Piedmont
Mentioned
KEY POINTS
- Share price was up 3.68% at the open
- Atlantic Lithium is now estimating a 42% increase in mineral resources at their Ewoyaa project
- Piedmont has an earn-in right to a 50% interest in Atlantic Lithium's Ghanaian projects
Having just finished a week of upbeat trading, following the announced update to the underwritten US$130.8m public offering of its common stock, Piedmont Lithium's (ASX: PLL) share price is on the move again today, up 3.68% at the open after disclosing another positive update.
Capturing the market’s attention this morning were revelations that Piedmont’s partner in Africa Atlantic Lithium is now estimating a 42% increase in mineral resources at their Ewoyaa project in Cape Coast, Ghana.
The updated estimates total 30.1m metric tonnes at 1.26% lithium oxide. It includes 20.5m tonnes at 1.29% of lithium oxide of Indicated Resources.
Piedmont has an earn-in right to a 50% interest in Atlantic Lithium's Ghanaian projects, including Ewoyaa, and holds an equity interest of approximately 10% in the business.
Commenting on today’s announcement Piedmont’s chief operating officer Patrick Brindle noted:
"The Ewoyaa project is one of the best-located spodumene projects in Africa, and its development is fundamental to our growth strategy as an important source of spodumene concentrate for our LHP-2 Project (lithium hydroxide manufacturing plant in US)."
Consensus on Piedmont is Strong buy.
Based in Morningstar’s fair value of $1.23, the stock appears to be undervalued.
Watch out for updates following today’s announcement from brokers like Canaccord Genuity, B. Riley Securities, D.A Davidson & Co, and Evercore Group.
Piedmont's share price has outperformed over the last three months.
