(MT Newswires) -- Stifel GMP on Tuesday reiterated its buy rating on the shares of Arena Minerals (AN.V) with a C$0.70 price target.
"Ganfeng Lithium is to buy Arena- neighboring Lithea Inc for US$962MM, implying a purchase price of US$241/t, materially above the ~US$97/t Lithium Americas (LAC-NYSE) paid for Millennial Lithium in 2021, also within the same Pastos Grandes Basin Arena is located in," analyst Cole McGill noted. "Pastos Grandes is fully staked by Arena (11,000ha) Lithea (7,500ha) and Lithium Americas (12,619ha). This follows Lithium Americas and Arena signing a formal collaboration agreement in May, aimed at optimizing production of the basin. Lithium Americas and Ganfeng both own ~18% of Arena, with Ganfeng retaining 35% interest in Arena's Sal de la Puna Project. We continue to highlight both i) Arena's favourable land package within Pastos Grandes, and ii) the strategic value of Arena's brine mixing process as the linchpin in consolidation."
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 0.39, Change: -0.03, Percent Change: -7.14