The Gold Report
Notable Quotes
"ICG has closed a CA$2.5M flow-through placement." (12/24/15) Integra Gold Corp. - Thibaut Lepouttre, Caesars Report More >
"The exploration upside at MAG's Juanicipio project is substantial." (12/23/15) MAG Silver Corp. - Gwen Preston, Resource Maven More >
"AKG's management continues to deliver on its development milestones." (12/22/15) Asanko Gold Inc. - Nana Sangmuah, Clarus Securities More >
"We are initiating coverage on KDX with a Buy rating." (12/21/15) Klondex Mines Ltd. - Don Blyth, Paradigm Capital More >
"VIT's Eagle is a shovel-ready, fully permitted, prefinanced gold project." (12/17/15) Victoria Gold Corp. - Tom Hayes, Edison Investment Research More >
CLQ Focused on Québec Lithium Project
|
ERIC ZAUNSCHERB, Canaccord Genuity
(11/09/2009)
Event Canada Lithium has relinquished its interest in its secondary Nevada lithium brine project and notched up the scale and confidence level of the Québec Lithium project with a target or conceptual resource of 29 million tonnes grading 1.1% Li2O. Impact – Positive The focus on the higher-value Québec lithium project is welcome and the resource target update increases clarity but impacts valuation only marginally to the positive. Valuation and Action We have removed the nominal C$3 million value of the Nevada brine project and incorporated the new Québec Lithium target or conceptual resource of 29 million tonnes grading 1.1% Li2O. We had valued Québec Lithium on the basis of the historical resource multiplied by the peer EV mean (less outlier) of C$0.08/lb multiplied by a factor of 1.5x to reflect a new NI 43-101 compliant resource expected by year-end. We have reduced this factor to 1.3x to reflect the fact that increased confidence and scale have now been captured to some extent. Our total project NAV estimate rises to of C$80 million, or C$0.55, up from C$0.46 per share. Canada Lithium is trading at price multiples of 0.6x project NAV and 0.9x corporate NAV. We apply a 0.7x target project multiple to generate a price target of C$0.50 per share. The 14% projected return continues to justify a SPECULATIVE BUY rating. |
PRINT THIS PAGE
EMAIL THIS PAGE
Under SEC rules, analysts are required to disclose their interest in securities that they cover. We strongly encourage you to contact them to understand any potential conflicts of interest they may have.
More Experts
"We expect PGLC's Relief Canyon site to be meaningfully advanced in 2016." (12/16/15) Pershing Gold Corp. - Heiko Ihle, Rodman & Renshaw More >
"ICG continues to stand out as one of the most active junior exploration companies globally." (12/9/15) Integra Gold Corp. - Michael Gray, Macquarie Equity Research More >
"We are initiating coverage on NMI with a Buy rating." (12/9/15) Newmarket Gold Inc. - Heiko Ihle, Rodman & Renshaw More >
"TV's mill throughput was up 19% MOM; zinc recovery improved by 9%." (12/9/15) Trevali Mining Corp. - Joseph Gallucci, More >
"THO pays a good dividend and produces at the lowest quartile costs." (12/9/15) Tahoe Resources Inc. - Gwen Preston, Resource Maven More >