KDR valuation lift from Foster Stockbroking

Kidman Resources Limited (ASX:KDR) has caught the attention of Foster Stockbroking following an upgrade of the size of its Earl Grey JORC resource.
The lithium project is in Western Australia and as well as the resource increasing from 128 million tonnes to 189 million tonnes, the lithium grade was also up from 1.44% to 1.5%.
Importantly, 91% of the resource is in the measured and indicated category.
Mine life of 80 years

Foster analyst Mark Fichera now sees the scope for a 2-million tonnes per annum project with a mine life of more than 80 years subject to successful reserves conversion.
The project would look even better if a 5 million tonnes per annum operation was established, an option that now appears even more compelling.
Near-term DFS a catalyst

Fichera expects the group to complete the definitive feasibility study in the second quarter of 2018.
A decision to mine is expected in the September or December quarter.
With these catalysts on the horizon and substantially more clarity around the project, Fichera has increased his risked valuation from $1.99 to $2.72 per share.
This represents a substantial premium to Friday’s closing price of $2.20.