Dundee Capital Markets Gives Nemaska Lithium a Buy Recommendation and Target Price of $1 a Share - Investing News Network

Dundee Capital Markets Gives Nemaska Lithium a Buy Recommendation and Target Price of $1 a Share - Investing News Network: "We initiate coverage on Nemaska Lithium with a BUY recommendation, High Risk, and a target price of C$1.00/sh, based on a 0.7x multiple applied to our 10%DCF. Our 10% NAV estimate is $678 MM or $1.32/sh, incorporating $588 MM or $1.15/sh of 10% DCF value to which we apply a 0.7x multiple to reflect financing a execution risk prior to both successful operation of the demonstration plant and Phase 2 financing. We then incorporate additional resource value, net cash and corporate costs totaling $0.18/sh. Our DCF model currently considers a 26-year mine life starting in CYH1/18. We assume US$450 MM Capex, production of 28,000 tpa LiOH at total cash costs of US$3,000 to US$3,200/t and realized prices of US$7,500/t LiOH; and 3,250 tpa LCE at total cash costs of US$3,500 to US$3,600/t and realized prices of US$6,000/t LCE. We incorporate 60% equity and 40% debt totalling $550 MM by CQ2/17."



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