Nemaska Lithium Report: Plan Nord Quebec Government Funding Prepares to Flow

A recent report by Dundee Capital Markets highlighted Nemaska Lithium Inc. (TSXV:NMX,OTCQX:NMKEF) highlighted the company’s relationship with the Quebec government.
As quoted from the press release:

We urge investors to Buy Nemaska Lithium, our top Li pick. We maintain a C$1.00/sh target after incorporating the Cree investment, Ressources Quebec pricing (completed at $0.34/sh; we had assumed $0.40/sh), and lower dilution for future financings. Our target is based on a 0.7x multiple applied to our 10%DCF.
The Quebec Government is the latest institution to work diligently with NMX. It puts Plan Nord equity to work to help get the LiOH demo plant built. Local native communities are not only supportive, but are investing further to gain the benefit of getting in early, job training, employment and other business opportunities. The demo plant is now nearly fully financed. This plant will allow qualification, an important period of technical and financial de-risking. NMX should gain credibility with potential LiOH end users as construction nears and it can confirm a sample delivery schedule. With Cree support, RQ equity, and SDTC and QC grants; final signing of the Johnson Matthey deal should cover demo plant costs for three years: $38 MM Capex and $3 MM working cap.
We continue to recommend Nemaska. Whabouchi project is fully permitted; the deposit is high grade with low impurities with the necessary characteristics to produce a clean con; production of LiOH is planned directly from con with low reagents and waste; lithium macro is strong, with LiOH prices above ~US$8,000/t.

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