Reading between the lines here it is almost a no-brainer to be invested in the EUR. As we move into the rest of the year, EUR will certainly be releasing news along the Roadmap that EUR Management has produced for its investors and the ADD rating and the price target will certainly move upward. In my opinion it is only your fault if you are not fully invested in EUROPEAN LITHIUM at this time. A wonder for sure that the MMs were able to scoop up so many shares from investors shortly before positive news release at the end of Q1 2018.
One Question here. How come there are so many sell orders in at over .40 Cents AUS on LEVEL 2 Trading? Does someone know something here that we do not? How come so high already?
First Berlin Equity Research on 07.03.2018 initiated coverage on European
Lithium Limited (ISIN: AU000000EUR7/ Bloomberg: PF8 GR). Analyst Simon
Scholes placed an ADD rating on the stock, with a EUR 0.19 price target.
Abstract:
The European lithium-ion battery industry is expanding fast to meet demand
from the electric vehicle sector. European battery megafactories announced
so far (more are expected to follow) are expected to generate lithium
carbonate demand of 20k tonnes in 2021 and over 60k tonnes in 2025.
European Lithium is well placed to become a supplier to these
megafactories. The current JORC (2012) resource of measured 2.86m tonnes
grading 1.28% Li2O and indicated 3.44m tonnes grading 1.08% Li2O supports
annual average output of 7.1k tonnes Li2CO3 over a projected 13 year mine
life at the Wolfsberg project.
Based on a discounted cash flow model and assuming an average Li2CO3 price of USD15,500/tonne, we arrive at a valuation of EUR0.19 per share. Our recommendation is Add.
There will be scope to raise our price target, if, as we expect, European Lithium raises its JORC resource to over 10m tonnes by the end of this year.
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