Barrenjoey says Leo Lithium's deal with Ganfeng Lithium opens door to growth, hikes PT

Leo Lithium

01/06/2023 01:03

** Australian miner Leo Lithium Ltd's  LLL.AX  placement and
co-operation agreement with Ganfeng Lithium Group  002460.SZ 
opens door to several potential value-accretive developments -
Barrenjoey   
    ** Brokerage raises target price to A$1.70 from A$1.20,
retains "overweight" rating
    ** LLL said on Monday it had signed a binding agreement with
Ganfeng to raise A$106.1 mln ($71.97 mln) and to cooperate for
the ramp-up of its Goulamina project in Mali
    ** Brokerage says placement ensures the Goulamina project is
funded to production 
    ** Estimates LLL will need to contribute a further A$110 mln
to deliver stage 1 of project
    ** Estimates agreement will directly add $201 mln per annum
in operating cash flow to LLL over the five-year term of the
agreement
    ** All five analysts covering the stock rate it "buy" or
higher; their median PT is A$1.50 – Refinitiv data
    ** LLL stock up 83.5% YTD, as of last close 

($1 = 1.4743 Australian dollars)

 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))