Original-Research: Rover Metals Corp. - von Sphene Capital GmbH
Einstufung von Sphene Capital GmbH zu Rover Metals Corp.
Unternehmen: Rover Metals Corp.
ISIN: CA77937B2003
Anlass der Studie: Initiation of Coverage
Empfehlung: Buy
seit: 03.08.2023
Kursziel: CAD 0,92
Kursziel auf Sicht von: 36 Monate
Letzte Ratingänderung: -
Analyst: Peter Thilo Hasler
Let's Go, Rover, Let's Go!
We initiate research coverage of Rover Metals with a Buy rating and a price target of CAD 0.92 per share, representing substantial upside from the current share price, and highlight that the current pullback in the company's stock price (during its recent financing rounds) could be an interesting entry point for investors. Rover Metals is the only company in our peer group that has not yet published a NI 43-101 report for its lithium resource, and we believe that even the publication of a technical report should result in a first re-rating of the shares, given the fact that peers are trading at significant premiums to Rover Metals, while having published substantial smaller resources. If Rover Metals succeeds with its drilling program and defines a mineral resource, we expect a substantial re-rating of the shares and potential interest from major mining companies to take over Rover Metals' ownership in the Let's Go Lithium project. But even in what we consider a low probability case that the lithium project has no value, we see downside protection for investors as other (zinc-copper-lead-silver and gold) assets were not included in our valuation. We do not expect Rover Metals to continue exploring on all properties, but favour discussing other options, f. ex. a trade sale to a major mining company.
Rover Metals is a pre-resource disclosure stage mineral exploration and development company focused on acquiring and exploring early-stage projects in Canada and the U.S. By focusing top-tier jurisdictions, the Canadian based company follows a risk-averse strategy, avoiding unsafe and politically unstable countries and regions with poor respect for property rights (i. e. high nationalization risk) and a lack of legal security, and benefits from a viable infrastructure, that we believe significantly lowers the economic thresholds for converting a discovery into a mine.
Rover Metals' undoubtedly most valuable asset, in our view, is the Let's Go Lithium (LGL) development property in the prolific U.S. state of Nevada. Recent lab verified surface grab samples have returned multiple high-grade lithium values of more than 650 ppm lithium, in-line with the nearby Franklin Wells mine which produced hectorite clay averaging 1,000 ppm lithium. Given these sections of very high grades, LGL could create a bulk tonnage potential, in our view. LGL is a sedimentary-hosted lithium (claystone lithium) project. Similar near surface claystone lithium projects in Nevada indicate that the capex costs of claystone lithium refining are almost 50% less than geothermal brine lithium extraction.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/27465.pdf
Kontakt für Rückfragen
Peter Thilo Hasler, CEFA
+49 (89) 74443558/ +49 (152) 31764553
peter-thilo.hasler@sphene-capital.de
übermittelt durch die EQS Group AG.
Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
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