Lithium Ionic Corp (LTH) has received a new Buy rating, initiated by BMO Capital analyst, Raj Ray.
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Raj Ray has given his Buy rating due to a combination of factors that highlight the potential of Lithium Ionic Corp. The company’s Bandeira project, outlined in the May 2024 feasibility study, presents an attractive low-cost and low-capital underground operation. With a projected production timeline set for Q2 2027, the project stands out for its relatively short timeline to first production compared to its peers. Additionally, the company is poised to benefit from a second-mover advantage in the Minas Gerais region of Brazil, following the successful path of Sigma Lithium.
Furthermore, the Bandeira project has experienced an expedited permitting process and is expected to gain from regional tax incentives. The company’s strategic partnership with RTEK International, a firm founded by the former COO of Sigma Lithium, adds further credibility to its operations. There is also potential for extending the mine life at Bandeira and additional growth opportunities at the Baixa Grande project, which the market has yet to fully recognize. These factors, combined with the company’s position as a significant landholder in Brazil’s Lithium Valley, underpin the positive outlook and Buy rating from Raj Ray.
Ray covers the Basic Materials sector, focusing on stocks such as Gold Fields, Harmony Gold Mining, and Sibanye Stillwater. According to TipRanks, Ray has an average return of 27.1% and a 71.23% success rate on recommended stocks.