Macquarie stands by its valuation of Patriot Battery Metals
Macquarie analysts are standing by their valuation of Patriot Battery Metals, the ASX-listed lithium play that has come under attack from an activist short seller in the United States.
As the market prepares for the lithium hopeful to reveal its maiden resource estimate at the end of the month, Macquarie analysts have maintained their bullish view of the company, which they argue could be worth as much as $CAD22 ($24) per share in 12 months.
Former Pilbara Minerals boss Ken Brinsden is chairman of Patriot Battery Metals. Trevor Collens
The lithium hopeful produced “highly positive” drilling results in its latest drilling campaign ahead of the maiden resource update disclosure, the broker said in a report to clients.
Patriot, which has a primary Toronto Stock Exchange listing and trades CHESS depositary interests on the ASX, owns the Corvette lithium spodumene project in the James Bay region in Northern Québec, Canada.
“The results from the winter drill program at Corvette 5 have been highly positive, with wide widths and strong grades announced,” Macquarie wrote in the July 12 note.
They pointed out a hit of 108 metres of 2.44 per cent lithium oxide grade. This hit is in addition to a 156.9 metre intersection at a more modest, but still desirable, 2.12 per cent lithium oxide grade.
On Tuesday, Patriot shares in Canada and Australia soared after the lithium explorer confirmed it had “received strong inbound interest… from a range of tier 1 global mining and chemicals companies”.
The miner said it was seeking legal advice on a report published by Night Market Research that alleged the company was manipulating its share price by delaying the results of test drilling.
The views of the short seller sit in stark contrast to
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