OTCQX:SREMF - Post by User
Comment by
seemoreinfoon Aug 22, 2013 12:34am
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Post# 21688529
RE:Dundee Securities: Buy rating and $0.75 target price for Canada Lithium Corporation
RE:Dundee Securities: Buy rating and $0.75 target price for Canada Lithium CorporationGreat info... BUY??? .....SELL??? ......HOLD??? Mine and plant shutdown. A three week shutdown is planned to make way for upgrades and maintenance on largely back-end operations. We know the mine and front end are working well with more than 100,000t of stockpiled ore available for crushing and 11,100t of spodumene concentrates produced during Q2/13. We expect this to accelerate ramp-up come end of September with mining probably picking up a few weeks after that.
Why we maintain our BUY. We still see value in CLQ, and numerous reasons to own the name despite recent setbacks: New mine management with significant experience; high quality product has been produced just not at full scale; still built a mine in under two years; working out final kinks with production by year-end; upside potential including hydroxide and lithium metal circuits; effectively sold out with two large off-takes; valuation upside considering CLQ trades at 6x EV/EBITDA (F14), while Talison was taken out at 12x. Canada Lithium will remain the go-to name for lithium exposure in a tightly controlled market.