We have revised our target price for CDA up to $2.51 from $2.24 per share in our report published in March 2017. This represents an 8.2% premium to the share price at 14 September 2017. The company continues to deliver product innovation and development which has resulted in sales and earnings growth in recent years.

We have completed an NAV valuation for Vista, with this resulting in a Company valuation of US$440 million, or US$4.50/share. 92% of the valuation is attributable to Mt Todd, with an NPV5 value of US$405 million, or US$4.14/share.

The company supplies it’s products and services to a number of high profile customers including PANASONIC, TESLA, CATL, Apple, 3M, BOSCH and Dyson. The recent transition to a supplier of advanced battery materials and equipment and services to the global LIB market has positioned the company to take advantage of the rapidly growing LIB market.

We have revised our valuation upward, based on the ultimate 50% ownership of Maricunga, to a range of A$1.33 to $2.44/share, with a mid-point of A$1.88/share - our preferred valuation and price target is at the lower end of this range given the comparison with transaction valuations. In our view the key value drivers will be successful pilot plant lithium carbonate production and the completion of a robust PFS.

We have updated our valuation for Mustang, with this resulting in a slightly lower base case 12-month price target of $85 million, or $0.16/share, a 225% premium to the current price. 80% of this is based on a risked DCF valuation for a hypothetical operation.