Leo Lithium's $72 mln placement removes funding shortfall for Goulamina project - Macquarie

Leo Lithium

30/05/2023 01:40

** Analysts at Macquarie say Leo Lithium's  LLL.AX 
strategic placement with a unit of China's Ganfeng Lithium Group
 002460.SZ  has removed the risk of funding shortfall during
final phases of project construction and production ramp up at
Goulamina 
    ** Leo signed a placement deal with Ganfeng Lithium's unit
to raise A$106.1 mln ($71.97 mln) and to cooperate for the
ramp-up of its Goulamina project in Mali
    ** Agreement also accelerates Stage 2 study work (for
Goulamina project), which could double production capacity -
Macquarie
    ** Brokerage cuts forecast for earnings loss, narrowing it
by 9% for CY23 after incorporating the strategic placement
results, while raises CY24 and beyond earnings by 4-6%
    ** Raises price target to A$1.55 from A$1.50 
    ** Five analysts rate the stock "buy" or higher; their
median PT is A$1.50 – Refinitiv data
    ** Stock up 75.3% this year, as of last close

    ($1 = 1.4743 Australian dollars)

 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))