Lifezone Metals: Strategic Developments and Promising Potential of Kabanga Nickel Project Drive Buy Rating

Analyst Gregory Lewis from BTIG maintained a Buy rating on Lifezone Metals and decreased the price target to $7.00 from $11.00.

Gregory Lewis has given his Buy rating due to a combination of factors surrounding Lifezone Metals’ strategic developments and the promising potential of the Kabanga Nickel Project. The recent capital raise of $15 million in equity is a crucial step for advancing the project towards a Final Investment Decision (FID), expected by mid-next year. Despite BHP’s exit, Lifezone Metals continues to lead the project, collaborating with the Tanzanian Government and seeking new partners, potentially including major mining companies.
Furthermore, the Kabanga resource is notable for being one of the largest and highest-grade nickel projects globally, offering geographic diversification by being located in East Africa. The project is projected to generate substantial revenue over 18 years, with the company leveraging its Kell Hydromet technology to reduce mining costs. Although current nickel prices are lower, there are anticipated market conditions that could drive prices higher in the long term, supporting the project’s economic viability. These factors, combined with a favorable valuation, underpin Lewis’s Buy rating for Lifezone Metals.