Latest News

Bacanora Lithium gets upgrade as Chinese partner ups stake in Sonora


Bacanora Lithium PLC (LON:BCN) has received a big price target upgrade from broker VSA Capital following the increase in its stake in the Sonora project by Ganfeng Lithium.

Ganfeng last week exercised its option to increase its project-level interest in Sonora in Mexico from 22.5% to 50% with an investment of GBP21.9mln.

Sonora has a post-tax NPV of US$910mln and the announcement significantly reduces the funding burden for Bacanora shareholders and therefore the potential impact of dilution.

That more than more offsets the reduction in Bacanora’s interest in the project, said VSA, noting that of the remaining US$210m capital cost, there is already a debt facility of US$150m in place.

Site works are due to commence in 2021 with production on track for 2023, which VSA adds should tie-in nicely with an expected uptick in global electric car demand and rising lithium prices.

Buy is the investment view with the new target price 118p more than three times the price of 378.5p today.

AstraZeneca to release COVID-19 vaccine data imminently, says Jefferies

Previous article

FTSE 100 finishes firmly in red as traders book profits after Monday’s gains

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News