LITHIUM ENERGY LIMITED (LEL)
Share Price Analysis and Chart

10/05/2024

1

Buy

$0.75

102.70%

Petra Capital maintains a Buy rating on Lithium Energy with a revised price target of $0.75 per share, down from a previous valuation of $1.85.

This change follows the announcement of the company's agreement to sell its 90% interest in the Solaroz Lithium Project for $97m in cash to CNGR Advanced Materials Co, a major player in the battery materials sector from China.

The broker calculates the sale equates to approximately $0.865 per share, and after estimated tax and costs, the net proceeds are expected to range between $74m and $85m.

Including the $10m valuation for the graphite assets from the proposed Axon spinoff, the broker states this supports the new target price of $0.75 per share.

Petra Capital sees the next key milestones in the lodgment of the Axon Graphite prospectus in the June quarter and the expected closure of the Solaroz transaction in the December quarter.

FORECAST
Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of minus -11.00 cents.
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -1.10 cents.