Having successfully tipped Neometals share price to jump on three previous occasions, Euroz has again tipped the soon to be Lithium miner’s share price to move north, this time by 23%. Euroz say their most recent analysis of the Mt Marion Lithium mine near Coolgardie, which is 26.9% owned by Neometals, shows the company’s share price should be more like 53c instead of 43c.
Having successfully tipped Neometals share price to jump on three previous occasions, well known Perth broker Euroz, has again tipped the soon to be Lithium miner’s share price to move north, this time by 23%.
Euroz say that on the back of their most recent in depth analysis of the Mt Marion Lithium mine near Coolgardie which is 26.9% owned by Neometals, the company’s share price should be more like 53c instead of 43c as it was when their research report was delivered in the last few days.
Euroz have form too, as they tipped Neometals price to run from 18.5c to 30c back in February and it did and they again tipped it to run from 29c to 37c in March and it did.
Even their most recent price target of 44c has now been achieved hence the upgraded outlook to 53c.
Euroz are predicting that Neometals will turn a profit after tax this year of $22m, largely from corporate plays and next year they will show a $19m profit after tax from their share of the Mt Marion project after it gets into production.
In the out years Euroz are predicting NPAT’s for Neometals of $11m in 2018, $8m in 2019 and $6m in 2020 just from existing known resources at Mt Marion.
The prediction assumes that Mineral Resources, Neometals partner in the project will take up their option to buy a further 13.1% of the project from Neometals for $19.65m leaving Neometals with a 13.8% free carried stake in the project and a stack of cash in the bank.
Importantly, Euroz elude to a potentially significant blue sky opportunity at Mt Marion with regard to a possibly underestimated exploration target that has not yet been factored into the company's share price.
The current exploration target at Mt Marion is 15-25 million tonnes grading 1.3% Li2O which could effectively double the size of the 23 million tonne existing known resource grading 1.4% Li2O.
However, Euroz say that after an analysis of the company’s latest spectacular deep hole drilling results under the existing resource, that exploration target could be up to 80 million tonnes which would dramatically revalue the project.
Recent deep hole drilling at the project returned an amazing 300m visible intersection with the results still pending. Other recent spectacular results included a 186m intersection grading 1.82% Li2O from 95m deep, 139m @ 1.69% Li2O from 116m and 92m @ 1.54% Li2O from 56m deep.
All eyes will be on Neometals when they announce their resource numbers at the end of June.
Lithium is the hottest product in town right now and Neometals appear to have wedged themselves into an exquisite position with a bucket of money in the bank, a sizeable free carried interest in a globally significant Lithium mine that has serious and as yet unvalued blue sky potential.
They say a broker is only as good as his last recommendation and with 3 out of 3 accurate predictions to-date regarding Neometals north bound share price, it just might be worth sitting up and taking notice of Euroz’s latest 53c price rise prediction for the company.
Oh yes, and the stock touched 47.5c yesterday so you might want to be quick.