Thoughts on Atlantic Lithium (A11) please
What are you views on Alantic Lithium? Aware there is an over-supply of lithium. Is it a hold? Kind regards Mark
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Answer
Hi Mark,
This $256mn lithium stock is a new one for the MM report and like the rest of the sector its endured a very tough 18-months as the underlying lithium price plunged over 80%. A11 is focusing on West Africa as its source of lithium, arguably a tough ask in todays market which is experiencing disappointing EV take-up from the US & China and increasing supply from established countries like Australian, Chile and China.
While we prefer larger more capitalised player such as Pilbara (PLS) we can see the stock bouncing back towards 50-60c butt at this stage we regard it as trading, as opposed to investment, stock.
