LATIN RESOURCES LIMITED (LRS)
Share Price Analysis and Chart

16/08/2024

3

Downgrade to Speculative Hold from Speculative Buy

$0.23

27.78%

Bell Potter lowers its target to 23c from 40c and downgrades Latin Resources to Speculative Hold from Speculative Buy due to minimal downside risk to the proposed scrip deal with Hold-rated Pilbara Minerals. It's felt shares should trade in lock-step.

The broker's target for Pilbara Minerals of $3.15 implies a 23c target for Latin Resources. The latter has announced it has entered into a binding Scheme Implementation Agreement for Pilbara Minerals to acquire 100% of its shares by way of a Scheme of Arrangement.

FORECAST
Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus -0.80 cents.
Bell Potter forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -0.60 cents.

20/08/2024

3

Downgrade to Hold from Speculative Buy

$0.19

5.56%

Pilbara Minerals ((PLS)) has entered a binding agreement to acquire Latin Resources, securing the flagship Salinas lithium project in Brazil, which represents an opportunity to diversify its upstream lithium business.

Canaccord Genuity envisages a low probability of a competing takeover bid.

Latin Resources shareholders will receive seven new Pilbara Minerals shares for each share held, implying an acquisition value of $563m. Rating is downgraded to Hold from Speculative Buy and the target reduced to $0.19 from $0.60.

FORECAST
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents.
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents.