London broker Liberum Capital has raised its target price for Millennial Lithium Corp (CVE:ML) (OTCQB:MLNLF) to $2.40 from $2.20 and reiterated a Buy rating on the Toronto-listed stock following the publication of a feasibility study for the Pastos Grandes project.
In a note to clients, Liberum analyst Ben Davies pointed out that the feasibility study, which gave cost estimates for capex and opex at the project, confirmed “robust economics, lower than those used in our company valuation.”
The analyst noted that the next step for the company is gaining the relevant environmental approvals before the end of the year and finalising the targeted financing structure.
He concluded: “We believe that we are at a cyclical low for the commodity and that the current share price is an attractive entry point”.
In Tuesday trading, Millennial Lithium shares were 6.6% higher at $1.62.
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