In a April 24 research note, ROTH Capital Partners analyst Joe Reagor reported that Piedmont Lithium Ltd.'s (PLL:NASDAQ; PLL:ASX) just-released initial resource estimate "demonstrated the quality of the Central property deposit."
The Central property, in Northern Carolina, has a maiden resource of 2.8 million tons with an average grade of 1.34% lithium dioxide, a grade that is higher than that of the Core property located 1 mile to the north, Reagor indicated.
As such, ROTH maintains its $30 million valuation of Central, noting the number is likely low. "However, we are not increasing this valuation at this time as we believe further work is needed to demonstrate this property's economics," he added.
Reagor suggested the next catalyst for Piedmont's stock will be the release of an updated resource estimate for Core, expected in June 2019. That likely will lead to a share price increase "as many investors believe the current resource at the Core property is on the small side," he explained. Piedmont likely will follow that with an economic study update that incorporates the new resource data.
ROTH has a Buy rating and a $36 per share price target on Piedmont, whose current share price is around $10.10.[NLINSERT]
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Disclosures from ROTH Capital Partners, Piedmont Lithium Ltd., Flash Note, April 24, 2019
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ROTH makes a market in shares of Piedmont Lithium Limited and as such, buys and sells from customers on a principal basis.
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