Patersons has "buy" recommendation on Valence Industries and a price target of 51¢. "Valence Industries (VXL) has seen its share price fall dramatically during the past 12 months from a high of 85¢ a share. This occurred despite the progress that has been made in bringing its Uley Graphite Plant into production, materially increasing Ore Reserves and Mineral Resources at Uley and completing a Feasibility Study into a substantial expansion in production, including a downstream beneficiation plant in Adelaide. We view VXL achieving nameplate capacity and specification on schedule by September as a key catalyst, as well as finalising all conditions precedent for receipt of the full debt funding facility and commencement of expansion facility construction both at Uley and Adelaide."
