##{"id":86452,"date":"2020-05-19T09:19:58","date_gmt":"2020-05-18T23:19:58","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=86452"},"modified":"2020-05-19T09:19:58","modified_gmt":"2020-05-18T23:19:58","slug":"research-piedmont-lithium-made-in-the-usa","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2020\/05\/19\/research-piedmont-lithium-made-in-the-usa\/","title":{"rendered":"RESEARCH: Piedmont Lithium, Made In The USA"},"content":{"rendered":"

Lithium demand is shifting from lithium carbonate to lithium hydroxide. Pitt Street Research reports Piedmont Lithium should be among the beneficiaries<\/em><\/p>\n

By Pitt Street Research<\/p>\n

An integrated and low-cost lithium processing play<\/u><\/p>\n

Piedmont Lithium ((PPL)) is developing a hard-rock lithium mine and associated processing operation in North Carolina.<\/p>\n

Like Kidman (acquired in 2019 for $776m) PLL intends to be an integrated player from spodumene mining to hydroxide processing.<\/p>\n

PLL’s mine has a higher-than-average lithium grade, is already ESG-compliant and is in the advanced stage of development.<\/p>\n

A US-based integrated alternative<\/u><\/p>\n

Currently a great deal of lithium carbonate and hydroxide has to be sourced from China.<\/p>\n

Given the ongoing US-China trade war and the expected backlash against China related to the Coronavirus, a US-based lithium supplier with reduced supply chain risk is likely to be welcomed by potential customers.<\/p>\n

Lithium hydroxide demand on the rise<\/u><\/p>\n

Given its technological superiority, lithium-ion battery makers for Electric Vehicles are gradually shifting from lithium carbonate to lithium hydroxide, with demand for the latter material expected to rise 25% p.a. for the next five years.<\/p>\n

PLL expects to benefit from this shift with its hydroxide plant.<\/p>\n

Valuation range of $0.34–0.62 per share<\/u><\/p>\n

We value PLL at $0.34 per share base case and $0.62 per share optimistic case using a DCF approach.<\/p>\n

We expect a steady growth in lithium prices, further progress on the project development plan and clarity on project funding will help re-rate the stock to our valuation range.<\/p>\n

Download the full report<\/strong><\/p>\n

Last week the report above was released by Pitt Street Research for which FNArena is a partner in distribution. The full report can be accessed here:<\/p>\n

https:\/\/www.fnarena.com\/index.php\/pitt-street-research\/PLL\/<\/a><\/p>\n

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n

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