Leo Lithium's placement removes Goulamina funding shortfall - Macquarie

Leo Lithium

30/05/2023 05:03

(Updates with share moves)
    ** Shares of Leo Lithium Ltd  LLL.AX  rise as much as 8.8%
to A$0.843, hitting a record high
    ** Analysts at Macquarie say co's placement with Ganfeng
Lithium's unit has removed the risk of funding shortfall during
final phases of construction and production ramp up at Goulamina
    ** Co had signed a placement deal with a unit of China's
Ganfeng Lithium Group  002460.SZ  to raise A$106.1 mln ($69.1
mln) and cooperate for the ramp-up of Goulamina project in Mali
    ** Agreement also accelerates Stage 2 study work, 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 = 1.5354 Australian dollars)

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