GMP launches coverage with $2 target and a NAV/Share of $2.7Here are some excerpts - fairly generic components of it.
Initiating coverage: Conventional spodumene
play and solid management team offers
exposure to robust lithium market
Critical Elements Corporation (CRE-TSXV) is a lithium exploration and
development company focused on realizing the commercial potential of the
Rose spodumene project in northern Quebec. Our CRE investment thesis is
twofold. First, we believe the Rose Project is relatively low risk which, in our
view, enhances the likelihood of commercial success. The mine plan
incorporates conventional open pit mining and a flotation process flow sheet.
The CRE management team includes experienced senior executives from
Rockwood Lithium GmbH prior to its US$6.2B acquisition by Albermarle Corp.
in 2015. Second, using our spodumene and tantalum price assumptions, as
well as operating and capital cost metrics that reflect the unique nature of
the deposit, we believe the Rose Project is economically viable.
Initiating with a BUY rating and $2.00/sh target price
We are initiating research coverage on CRE with a BUY rating and $2.00/sh target price. Our valuation is derived by applying a 25% discount to our NAV estimate of $2.70/sh. CRE management has stated that they are having discussions with a number of potential strategic partner candidates which represents a potential catalyst for the stock price.
Management has extensive experience in the lithium industry
The CRE management team includes Steffen Haber, President, and Marcus Brune, Director, bothof whom have extensive lithium industry experience. Dr. Haber was previously CEO and Presidentof Rockwood Lithium GmbH and led its lithium business from 2007 to 2012. Mr. Brune was theCFO of Rockwood Lithium GmbH from 2011 until its US$6.2B acquisition by Albermarle Corp. in2015 and remained with Albemarle until 2016 to oversee the transition process. Together, Dr.Haber and Mr. Brune were responsible for Rockwood’s Talison spodumene mining operations inwestern Australia, the largest spodumene project globally, and its Atacama brine project in Chile,the largest global brine project.