In a April 24 research note, ROTH Capital Partners analyst Joe Reagor reported that Piedmont Lithium Ltd.'s (PLL:NASDAQ; PLL:ASX) just-released initial resource estimate "demonstrated the quality of the Central property deposit."
The Central property, in Northern Carolina, has a maiden resource of 2.8 million tons with an average grade of 1.34% lithium dioxide, a grade that is higher than that of the Core property located 1 mile to the north, Reagor indicated.
As such, ROTH maintains its $30 million valuation of Central, noting the number is likely low. "However, we are not increasing this valuation at this time as we believe further work is needed to demonstrate this property's economics," he added.
Reagor suggested the next catalyst for Piedmont's stock will be the release of an updated resource estimate for Core, expected in June 2019. That likely will lead to a share price increase "as many investors believe the current resource at the Core property is on the small side," he explained. Piedmont likely will follow that with an economic study update that incorporates the new resource data.
ROTH has a Buy rating and a $36 per share price target on Piedmont, whose current share price is around $10.10.
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Disclosures from ROTH Capital Partners, Piedmont Lithium Ltd., Flash Note, April 24, 2019
Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
ROTH makes a market in shares of Piedmont Lithium Limited and as such, buys and sells from customers on a principal basis.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.
