GALAN LITHIUM LIMITED (GLN)
Share Price Analysis and Chart

09/12/2024

3

Neutral

$0.14

27.27%

Macquarie believes the lithium price is stabilising, with the impact of lower price forecasts partially offset by favourable adjustments to the broker's currency assumptions.

The broker reduces nickel price forecasts by -10% for 2025, -12% for 2026-2028, and -9% for 2030, noting the 2025 projection is -3% below consensus. The long-term price of US$20,000/t remains unchanged.

For Galan Lithium, the Neutral rating and 14c target are maintained.

FORECAST
Macquarie forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -2.50 cents.
Macquarie forecasts a full year FY26 dividend of 0.00 cents and EPS of minus -3.90 cents.

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06/11/2024

1

Buy

$0.36

227.27%

Petra Capital maintains a Buy rating on Galan Lithium with a target price of $0.36, noting progress on the Hombre Muerto West project, which is now 45% complete.

The broker highlights the pending US$40m prepayment from Chemphys, expected this quarter, as critical funding for completing the Hombre project’s next stages.

The analyst highlights cash reserves at $16m following a recent capital raise, and further funding of $50m is anticipated to cover the remaining -$95m capex.

The broker suggests Galan Lithium's adjacent resource to recent acquisitions by Rio Tinto ((RIO)) underpins strategic value, with new Argentine tax incentives potentially enhancing project returns.

No change to target price at 36c. Buy rating retained.

FORECAST
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -0.60 cents.
Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of minus -0.10 cents.