Original-Research: Rover Metals Corp. (von Sphene Capital GmbH): Buy

Original-Research: Rover Metals Corp. - von Sphene Capital GmbH

Einstufung von Sphene Capital GmbH zu Rover Metals Corp.

Unternehmen: Rover Metals Corp.
ISIN: CA77937B2003

Anlass der Studie: Update Report
Empfehlung: Buy
seit: 18.10.2023
Kursziel: CAD 0,75 (bisher: CAD 0,92)
Kursziel auf Sicht von: 36 Monate
Letzte Ratingänderung: -
Analyst: Peter Thilo Hasler

Upgrading LGL’s project size to 33.6 sq km  
After the acquisition of a further 2,400 acres, significantly enhancing the total project size of Rover Metals’ most promising asset Let’s Go Lithium (LGL) to approximately 8,300 acres or 33.6 sq km, we reiterate our Buy rating for the shares of Rover Metals. However, the significant upgrade in LGL’s project size is counteracted by the recent slump in LCE prices. Hence, we reduce our probability weighted net asset value based price target to CAD 0.75 from CAD 0.92 per share. Our price target is based solely on the speculative lithium resources of the LGL project, other assets were not included in our valuation, representing a potential bonus to our NAV calculation. We not only highlight that the current pullback in the company’s stock price—in-line with the general weakness of the explorer sector—could be an interesting entry point for long-term investors. We also believe that this undervalued, below the radar flying company is an attractive investment and expect it to re-rate as it aggressively explores and expands resources at its LGL project.

Rover Metals has acquired a further 2,400 acres (ca. 9.7 sq km) of new claims to its Let's Go lithium (LGL) project in the prolific southwest lithium area in the U.S. state of Nevada, upgrading the total project size by ~41% to approximately 8,300 acres (33,6 sq km). Situated in close proximity to the world-class Albemarle Silver Peak mine, the only producing lithium mine in North America, and near the Tesla Gigafactory in Nevada, Rover Metals has verified high-grade lithium surface samples at the project in the past, including surface grab samples with up to 930 ppm lithium.

The seller of the property is the Bureau of Land Management (BLM). According to the company, the US-governmental organization sold the land for total costs of USD 25,000, mainly for staking and filing. According to the company, 75% of this new ground is free and clear of any underlying royalties.

Since Rover Metals plans to explore only to the top of the hydrologic water flow system, the additional claims are of considerable high value to Rover Metals, in our view, (1) because the water table in this area is at least twice as deep as in the rest of the area, so Rover Metals will be able to add twice as many tonnes to a future resource estimate, compared to the existing claims, and (2) because the highest lithium grades in sedimentary claystone are typically found in deeper regions.

Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/27875.pdf

Kontakt für Rückfragen
Peter Thilo Hasler, CEFA
+49 (89) 74443558/ +49 (152) 31764553
peter-thilo.hasler@sphene-capital.de

-------------------übermittelt durch die EQS Group AG.-------------------

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