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Investing.com - Critical Metals Corp. (NASDAQ:CRML), currently trading at $5.85 and showing a 10.7% decline over the past week, received a Buy rating initiation from Clear Street on Wednesday, with a price target of $12.00. According to InvestingPro analysis, the stock appears overvalued at current levels.
Clear Street’s coverage initiation is based on a 19x EV/EBITDA multiple applied to the firm’s June 2029 fiscal year adjusted estimate of $82 million in EBITDA, which coincides with the final calendar year of Phase 1 production ramp-up. The company, currently valued at $602 million, reported negative EBITDA of $24.3 million in the last twelve months.
The research firm identified the Tanbreez mining project as the key catalyst for Critical Metals’ growth trajectory, noting that CRML is expected to own 92.5% of the project by late December after reaching a capital expenditure milestone.
Clear Street factored potential funding share issuance dilution of 13% into its price target calculation, accounting for the company’s financing needs to develop the mining project.
The $12 price target represents a significant premium to Critical Metals’ current trading price, reflecting Clear Street’s positive outlook on the company’s long-term production capabilities.
In other recent news, Critical Metals Corp announced new assay results from its 2024 diamond drill hole program at the Fjord Deposit in Greenland, revealing consistent rare earth mineralization. The reported Total Rare Earth Oxide grades were between 0.40% and 0.42%, with notable zirconium and gallium oxide readings. Additionally, Critical Metals has signed a non-binding Letter of Intent with Ucore Rare Metals for a 10-year supply agreement of rare earth feedstock from the Tanbreez Project. This agreement aims to supply Ucore’s facilities in Louisiana and Ontario with essential materials. In organizational developments, Critical Metals appointed Mathias Barfod as President of Greenland Operations to oversee the scale-up of the Tanbreez Project. The company also formed a new Advisory Board, which includes mining experts Christian Aramayo and Mathew August. Former U.S. Air Force General Tim Ray has joined this board to aid in the development of the company’s projects. These developments mark significant steps in Critical Metals’ ongoing efforts to advance its operations and strategic partnerships.
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