Piedmont Lithium initiated with a Market Perform at BMO Capital

BMO Capital analyst Greg Jones initiated coverage of Piedmont Lithium with a Market Perform rating and $20 price target. Piedmont is developing an integrated lithium business with the objective of supplying the North American battery supply chain, the analyst tells investors in a research note. The firm says Piedmont has offtake agreements in place to provide near-term concentrate volumes and revenue. However, BMO sees near-term headwinds from low spodumene prices and elevated operating costs impacting joint-venture operations, and uncertainty on the capital costs, funding plans, and development timeline for Piedmont’s planned chemical plant operations.