In a report released today, Heiko Ihle from H.C. Wainwright reiterated a Buy rating on Nouveau Monde Mining, with a price target of $2.75.
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Heiko Ihle has given his Buy rating due to a combination of factors including Nouveau Monde Graphite’s successful securing of over $1.0 billion in potential debt funding for its Phase 2 project. This substantial financial backing, which includes commitments from major entities like Export Development Canada and the U.S. Export-Import Bank, reflects strong confidence from lenders in the company’s future operations. The terms of the debt, such as long-term maturities and no capital repayment during construction, further underscore this confidence.
Additionally, the company’s advancement towards a Final Investment Decision (FID) is progressing smoothly, with significant interest in its Phase 2 operations. The alignment of senior debt packages with the company’s financing plans, alongside a robust project financing timeline, supports the Buy rating. Ihle’s valuation of the company is based on a discounted cash flow analysis, yielding a project net asset value of $931 million, or $3.74 per share, which justifies the price target of $2.75. The analyst also notes the company’s strong balance sheet and the reduced project financing risk as key factors in maintaining the Buy rating.