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Original-Research: Rock Tech Lithium Inc - von GBC AG Einstufung von GBC AG zu Rock Tech Lithium Inc Unternehmen: Rock Tech Lithium Inc ISIN: CA77273P2017 Anlass der Studie: Research report (Anno) Empfehlung: Buy Kursziel: 4.05 CAD Letzte Ratingänderung: Analyst: Marcel Goldmann, Cosmin Filker Core asset Georgia Lake delivers the fuel for the e-mobility megatrend; Georgia Lake deposit has rich lithium reserves and represents a promising investment in the growth market of lithium; Holdings of 13.3 million tonnes of lithium resources and thus the necessary amount for the economic production of the raw material; Using the preliminary economic assessment (PEA), another important step towards lithium mining was taken; PEA report values the main area of the core project in Georgia Lake at around CAD 312.0 million (NPV) with an IRR of 62.2% The current environment for Rock Tech is still very promising. Falling lithium-ion battery prices, increased regulation in the automotive industry (e-car sales quotas, higher emissions limits, etc.), pending bans on conventional motor vehicles, planned departure in certain countries from classic drive technology in motor vehicles, increasing environmental protection (sustainability) and government subsidies are boosting demand for electric vehicles and thus the demand for lithium, as vast quantities of this metal are used in key individual components (batteries) in electric cars. The market for electric vehicles is a relatively young market and has recently shown dynamic growth. We expect that the electric vehicle market will continue its strong growth in the future and secure a significant market share in the overall automobile market in the long term. Automobile research institutes, such as the CAM, are acting on the assumption that electric cars will account for around 25.0% to 40.0% of sales on the entire automobile market in 2030. Against the backdrop of what we expect to be the long-term establishment of electric mobility, we expect increased demand for lithium from the automotive industry for many years to come. However, the demand for lithium is not only influenced by the automobile sector. Other growth markets, such as the e-bikes market and the energy storage market require larger quantities of lithium for batteries. These markets are also proven growth markets that have performed extremely strongly in recent years. We also expect continued significant growth for these sectors in the long term, which should, in parallel, also reflect in strong demand for lithium. These new markets will therefore, in our view, provide added impetus for lithium demand. The increasing demand for lithium is also already being reflected in the market price for lithium carbonate (the most used type of lithium). The price has exploded between 2014 and today increasing by almost 200.0% to around USD 14,000/tonne. Due to the continuing increase in demand for lithium from various sectors and a continuing limited supply of lithium, we expect the lithium price to remain at a very high level over the long term. Due to the excellent conditions on the market and the attractive market environment, Rock Tech has put suitable strategic measures in place to benefit from this positive market trend in the area of lithium. Against this background, Georgia Lake, which was purchased in 2009, was significantly developed. In doing so, the historical resource estimates were converted to NI-43-101-compliant resource estimates and were thus confirmed or even substantially increased. In addition, other key steps, such as the preparation of the PEA report, were taken towards lithium production. Building on the expanded NI-compliant resource base totalling 13.3 million tonnes (Li2O grade: 1.09%) a preliminary economic assessment (PEA) was carried out. This assessment resulted in a valuation of the core asset Georgia Lake at CAD 312.0 million (MPV) with an IRR of 62.2%.The results of the analysis therefore show great economic potential for the Georgia Lake area and thus attractive potential returns for investors. Rock Tech's core business is to further develop promising commodity assets (in particular in lithium) that are still at an early stage, acquire them and promote them further. In our opinion, the company's primary aim is not to mine commodities themselves, although it can be an option in individual cases, in order to achieve the best shareholder return. Based on the current 13.3 million tonnes in NI-compliant lithium resources and the excellent framework conditions (e-mobility megatrend, strong increase in the price of lithium), according to our DCF model, we regard the current fair value of Rock Tech Lithium Inc. to be CAD 4.05 or EUR 2.71 (previously: CAD 4.00 or EUR 2.56). The change in stock price target results from slight dilution effects and an adjusted cost of capital due to a change in risk-free interest rates. Based on the current price level, there is still great share price potential and thus the BUY rating remains unchanged. In light of the burgeoning e-mobility sector and the further development of the core asset Georgia Lake towards lithium production, we see a good chance that Rock Tech could be acquired by a company from the direct or indirect e-mobility sector (battery corporation, commodity corporation or automobile corporation) in the medium term or start cooperation with such a company. Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/17409.pdf Kontakt für Rückfragen Jörg Grunwald Vorstand GBC AG Halderstraße 27 86150 Augsburg 0821 / 241133 0 research@gbc-ag.de Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,5b,7,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung.htm Datum (Zeitpunkt)Fertigstellung: 13.12.18 (10:19 Uhr) Datum (Zeitpunkt) erste Weitergabe: 13.12.18 (11:00 Uhr) =------------------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.
(END) Dow Jones Newswires
December 13, 2018 05:03 ET (10:03 GMT)
