IronRidge Resources Limited has one of the most promising lithium projects in development, according to Liberum, which has kick-started coverage with a ‘buy’ recommendation and 32p target price.
Ewoyaa, a spodumene lithium project in Ghana, is best in class in terms of opex and capex, said the house broker.
Output from the mine would also be among the greenest available (hydropower, no chemicals, existing infrastructure, near the port).
Piedmont Lithium is investing US$102mln to earn 50%, which would fully fund and fast-track Ewoyaa to production.
Tesla has a supply agreement with Piedmont, which has agreed to purchase 50% of Ewoyaa’s output.
Liberum believes an updated scoping later this year will extend the mine life beyond ten years while a full definitive feasibility study could see the life extend again to double the 8 years indicated in the original scoping study.
Shares were trading today at 23p.