Fair enough, but brokers seem to be getting bullish again ... this just floated into the inbox on BAT +100% TP Battery Minerals (ASX:BAT) is pleased to announce Morgans has initiated coverage on the Company, with the Company's spherical graphite plant setting BAT apart. The Company has received an ADD recommendation and A$0.23/share price target. Key highlights of the research report:
BAT has released a series of studies that demonstrate the outstanding economics (combined pre-tax NPV US$524m) of producing natural and coated spherical graphite from the Montepeuz project.
Unique first mover advantage as BAT is the first ASX listed graphite play to release a PFS on the production of spherical graphite and also the first ASX player to produce purified spherical graphite from its pilot plant in the USA. Spherical graphite project greatly enhances project economics (pre-tax NPV US$377m) and will now progress straight to DFS.
BAT has released a maiden Ore Reserve and DFS for the Montepeuz project. Using conservative assumptions, the study demonstrates robust economics (pretax NPV US$146m) over a 30-year mine life.
We initiate coverage with a speculative ADD recommendation and a A$0.23/share price target. We believe the recent share price decline contradicts the significant progress being made by BAT to become a supplier of battery anode material to the growing Li-ion Battery market.
VRC Price at posting:
3.7¢ Sentiment: Buy Disclosure: Held
