BMO Capital analyst Raj Ray maintained a Buy rating on PMET Resources Inc on October 24 and set a price target of C$7.00.
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Raj Ray has given his Buy rating due to a combination of factors that highlight the potential of PMET Resources Inc. The feasibility study for the Shaakichiuwaanaan project aligns with expectations, showing robust operational parameters and a promising after-tax NPV and IRR. Despite higher capital expenditures, the project benefits from lower operating costs and significant tax credits, which enhance its economic resilience. Furthermore, the market appears to undervalue the caesium potential, which could provide additional upside.
Ray sees PMET Resources as a cornerstone in Québec’s emerging lithium supply chain, with the potential for a large-scale, multi-decade operation. The project’s feasibility study indicates a strong base case, with opportunities for further value through mine life extension, by-product credits, and cost optimizations. These factors, combined with ongoing developments in caesium and project financing, support the Outperform Speculative rating and a target price of C$7.00.
According to TipRanks, Ray is a 5-star analyst with an average return of 33.5% and a 70.86% success rate. Ray covers the Basic Materials sector, focusing on stocks such as Standard Lithium Ltd, Centerra Gold, and PMET Resources Inc.
In another report released on October 22, Raymond James also maintained a Buy rating on the stock with a C$8.50 price target.