In a report released on September 25, Heiko Ihle from H.C. Wainwright reiterated a Buy rating on Electra Battery Materials Corp, with a price target of $2.20.
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Heiko Ihle has given his Buy rating due to a combination of factors including Electra Battery Materials Corp’s recent securing of C$17.5 million in funding from Invest Ontario, which is expected to support the construction of their cobalt sulfate refinery. This funding is part of a larger potential government support package totaling about $48 million, which includes a previous $20 million award from the U.S. Department of Defense. The funding is anticipated to aid in the final steps of the refinery’s construction, positioning Electra as a significant player in North America’s battery-grade cobalt sulfate production.
Additionally, Electra’s capital structure has seen improvement through a $30 million financing deal, allowing the company to restructure its senior secured convertible notes. This transaction is expected to advance the completion and ramp-up of its cobalt refinery and black mass recycling program. Ihle’s valuation model, which includes a revised discount rate and other adjustments, results in a consolidated NAV of $60.5 million, supporting a price target of $2.20 per share. These factors, combined with the company’s strategic location and long-term potential, underpin the Buy rating.