Analyst David Deckelbaum of TD Cowen maintained a Buy rating on Lithium Royalty Corp., retaining the price target of C$7.00.
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David Deckelbaum has given his Buy rating due to a combination of factors that highlight the growth potential and strategic investments of Lithium Royalty Corp. The company reported a significant increase in revenue, driven largely by the timing of shipments and the receipt of its first royalty payment from Tres Quebradas, with expectations for additional payments from Mariana and Horse Creek in the near future. Additionally, LIRC’s acquisition of its first Tungsten royalty on Happy Creek Mineral’s Fox Tungsten project marks a strategic expansion into new resources.
Another factor supporting the Buy rating is LIRC’s diverse portfolio of royalties, including a 0.9% NSR royalty from Sigma’s Grota do Cirilo and a 0.9% GOR royalty from Zijin Mining’s Tres Quebradas project, which is anticipated to grow significantly. Despite a negative EBITDA in the third quarter, the company maintains a strong cash position with no debt, and its recent share repurchase indicates confidence in its growth trajectory. Furthermore, the relaunch of the Finniss project and the commencement of production at the Horse Creek quartz mine, where LIRC holds substantial royalties, further bolster the company’s future revenue potential.
According to TipRanks, Deckelbaum is a 3-star analyst with an average return of 3.6% and a 38.12% success rate. Deckelbaum covers the Energy sector, focusing on stocks such as Sable Offshore, APA, and Coterra Energy.