Kidman Resources Limited (ASX: KDR)

KDR Details
Kidman Resources Limited, a lithium and gold development group operating in New South Wales (NSW), Western Australia and Northern Territory, witnessed a whopping 312% run-up in stock price in last one year (as at November 29, 2017) and has zoomed up over 23% in last five days.

The group has lately highlighted that JV with SQM (Sociedad Quimica y Minera de Chile) for Mt Holland has placed Kidman to be the only integrated spodumene project based in Western Australia listed on the ASX. Primarily, SQM is investing $110 million to earn 50% equity in the Mt Holland Project, and the same will include US$30m cash payment and US$80m capital contribution to fund mine development. This will support Mine Feasibility study; Mine, Concentrator, and Infrastructure development and construction; and feasibility study into Refinery. Further, the integrated refinery model is associated with substantially higher margins than the sole spodumene concentrate operations. With rising lithium ion batteries’ demand, there is a potential given the group’s world-class hard-rock lithium deposit.

On November 30, 2017, the stock was seen to be losing some gains of the past with a 3.6% drop that seems to be owing to profit booking and volatility. Given the trading scenario and potential upside, we think investors can wait for a stock price dip and for any future catalysts or developments on its project. We give an “Expensive” recommendation at the current price of $1.59
 

Global Lithium Projects (Source: Company Reports)

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