Sprott UPGRADE in NILI stock price to $ 2.50/shareSprott Update this morning:
Surge Battery Metals, 04 October 2023
Yesterday’s news is materially positive. Recall the southernmost hole (NN2208) drilled last year returned a remarkable 77.7m @ 3,245ppm from surface on the border of today’s mentioned private land.
Today’s news is the first step in securing the surface rights for drilling next year without NOI constraints, where we estimate a potential ~2Mt of additional LCE could be added subsequent to our maiden 1Q24 target (SCPe 4-6Mt LCE).
While more work is required to secure the remaining 75%, we are encouraged by management’s quick progress here and add SCPe 2Mt LCE to our long term estimate at a nominal US$65/t insitu for 25% ground, and that's ahead of additional upside from potentially thicker mineralization to the southeast, with last year’s hole NN2207 (120m @ 3,943ppm) ~300m NE from high-grade border hole NN2208 more than double the thickness used in our conservative resource estimate.
As such, we maintain our BUY rating and lift our C$2.30/sh PT to C$2.50/sh based on SCPe ~5Mt LCE @ 3,437ppm Li and nominal US$65/t insitu.