GREY:NMKEF - Post by User
Post by
lithium1on Jun 10, 2011 4:42pm
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Post# 18701197
# 2 Ranked project in the world
# 2 Ranked project in the worldNMX has the largest Measured LI20 resource in the world
NEMASKA EXPLORATION Dundee Securities Initiates Coverage
Nemaska Exploration (NMX) - 139% lift to our C$1.10/sh target. A resource update from Whabouchi in Quebec increased M&I by 156% and provides for over 1.1 million t LCE. We see a strong buy opportunity…with 73% of the contained resource of Canada Lithium at 36% higher grades NMX has less than 20% CLQ's market cap. We anticipate 6.5% Li2O spodumene concentrate production of 200,000 t by the end of next year. Expectations for 50% gross margins are heightened by the potential to drop strip ratios and capital costs. Without processing, eliminating need for a plant saves time, capital and risk. With a large Chinese lithium battery materials provider invested, we speculate that NMX will get assistance in attaining near term cash flow, and perhaps a value added lithium carbonate plant thereafter.