Heiko Ihle, an analyst from H.C. Wainwright, reiterated the Buy rating on Electra Battery Materials Corp. The associated price target was lowered to $2.10.
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Heiko Ihle has given his Buy rating due to a combination of factors that highlight Electra Battery Materials Corp’s strategic positioning and financial readiness. The company recently completed significant financing and debt equitization, raising a total of $82.0 million, which positions it well to commence construction and commissioning of its cobalt sulfate refinery. This financial maneuver not only secures the necessary capital but also aligns management’s interests with those of shareholders, as demonstrated by the issuance of stock options.
Furthermore, Ihle’s valuation model, which is based on a discounted cash flow analysis for the refinery, supports a positive outlook with a calculated net asset value (NAV) of $500.5 million. Despite a slight decrease in the price target to $2.10 due to dilution effects, the overall valuation remains robust, reflecting the company’s strategic location and long-term potential. The anticipated near-term catalysts related to construction milestones and initial production, along with the underappreciated value of the Iron Creek asset, reinforce the Buy rating as Electra advances its mining capabilities to meet the growing demand for critical minerals.