Canaccord Genuity raises target price on Atlantic Lithium

Analysts at Canaccord Genuity raised their target price on mining firm Atlantic Lithium from 60.0p to 70.0p on Thursday after the group announced a 42% increase in mineral resources at its Ewoyaa project in Ghana.

Canaccord Genuity said it had "repeatedly flagged" the potential for geological upside at Ewoyaa and noted that the resource remains open along strike and at depth.

The Canadian bank stated the next phase of the exploration programme, which commenced last week and included around 18,000 metres of drilling, comes as only 13 square kilometres out of a total 560sq km in Atlantic's Ghanian portfolio has been drilled to date - meaning there were several identified pegmatites in the area that remained untested.

"On this basis, we expect further resource upgrades from the company," said the analysts.

"Given Ewoyaa is already fully funded to production, we view the delivery of a positive project feasibility study (expected during Q2) without the immediate need for a subsequent equity raise as a key differentiator for ALL. We raise our target price to 70.0p (from 60.0p) based on an average peer multiple of around 1.3x adjusted net asset value, based on a long-term SC6 price estimate of $1,000 per tonne (versus current spot of roughly $5,000 per tonne). Maintain 'speculative buy' rating."