SPEC BUY 4.75$Maintain SPEC BUY; C$4.75/sh target price: Our estimates remain unchanged at this time. We maintain our SPEC BUY rating and C$4.75 per share target price. FL currently trades at 0.54x NAV, at a discount to peers at 0.71x NAV.
We remind investors that our current valuation for Frontier is based on the processing of only 23Mt of ore, which is well below the company's total resource of 42Mt grading 1.54% Li2O (among the largest in North America and highest grade). Based on the consistency of infill drilling to date, we expect the majority of the existing mineral resource at Spark to be upgraded from inferred to measured & indicated and included in the mine plan in the future. This could result in a potential mine life extension of ~14-18 years (18Mt currently included in our mine plan; 32Mt current resource, ~1Mtpa processing).
Reference : Canacord Genuity