Initiated coverage 82c Buy Valuation

A further 'Buy' rating put out by Hartleys today.
82c Valuation
82c Price Target

Initiate with Buy

GMM is well placed to take advantage of rising spodumene prices. Its relationship with offtake customers mean it is well placed to also develop new projects (our preliminary valuation for 50% James Bay is $40-60m). We estimate that GMM trades on life-of-mine EV/EBITDA of 6.1x, but using US$750/t it is only on 4.4x. Additionally, the potential development of James Bay in Quebec could add significant value to GMM, and increase its market share in global spodumene supply. We are initiating with a Buy.