We reiterate our view that PMT’s Shaakichiuwaanaan spodumene project in Québec is firmly a tier 1 asset for undeveloped spodumene projects globally which has both scale and quality. We see further upside to the already large 142.6mt @ 1.38% Li2O resource, with PMT looking to define the belt and has a 146-231mt at 1.0-1.5% Li2O exploration target outside the current MRE. Near-term catalysts include ongoing drilling results and an update on permitting and the ESIA submission. We have lowered our ASX and TSX price targets by 9% and 10% to A$1.00 and C$9.30 to incorporate increased equity dilution due to the decline in the share price. We continue to believe Shaakichiuwaanaan’s scale and development potential as attractive, both as a standalone development and to potential acquirers and reiterate our BUY rating.
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