Lithium

Piedmont Lithium’s Africa partner makes major upgrade to its mineral resource: Piedmont can earn-in up to 50%

Wed 30 Mar 22, 11:20am (AEST)
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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.

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Piedmont's share price has outperformed over the last three months.

Written By

Mark Story

Editor

Mark is an investigative financial journalist and editor who started his career working for Marathon Oil in London. He has a degree in politics/economics and a diploma in journalism. Mark has worked on 70-plus newspapers and financial publications across Australia, NZ, the US, and Asia including: The Australian Financial Review, Money Magazine, Australian Property Investor and Finance Asia. Mark is passionate about improving the financial literacy of all Australians through the highest quality content. Email Mark at [email protected].

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