Analyst Raj Ray from BMO Capital maintained a Buy rating on Patriot Battery Metals Inc and keeping the price target at C$7.00.
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Raj Ray’s rating is based on several compelling factors that highlight the potential of Patriot Battery Metals Inc. The Shaakichiuwaanaan project, which Raj visited, demonstrated significant promise as a world-class lithium mine. The presence of large, high-grade spodumene crystals suggests that the project could benefit from low-cost processing, enhancing its economic viability. Additionally, the project’s potential to produce caesium as a by-product adds further value, especially if commercial and offtake agreements can be secured.
Moreover, the remote location of the project could attract government support for infrastructure improvements, which would further reduce operational costs. The proximity to key regional infrastructure, such as the Trans-Taiga road and the Le Grande 4 Quebec hydroelectric station, is advantageous. Raj also sees several upside opportunities, including by-product credits from caesium and tantalum, and potential cost savings from infrastructure projects. The imminent release of a lithium-only feasibility study is expected to provide a solid foundation for the project’s future development, reinforcing the Buy rating.