Bitcoin price today: gains to $120k, near record high on U.S. regulatory cheer
On Thursday, H.C. Wainwright adjusted the stock price target for Atlas (NYSE:ATCO) Lithium Corp. (NASDAQ:ATLX) to $19.00, while retaining a Buy rating on the stock. The adjustment follows the company's recent progress in securing a permit for its Das Neves Project.
Atlas Lithium Corporation received a favorable 161-page technical report from the Minas Gerais Environmental Foundation (MGEF) on September 23, endorsing the company's permit application for the project. The MGEF, an agency responsible for regulating operational licensing in Minas Gerais, has been closely involved with the company's permit process. This development is seen as a significant step toward Atlas Lithium's goal to construct and operate a lithium processing plant and to begin processing mined ore.
The operational permit application for the Das Neves Project was submitted by Atlas Lithium on September 1, 2023. Since then, the MGEF technical team has conducted an on-site inspection. The approval of the technical report marks the culmination of a 12-month process during which the company addressed multiple technical inquiries from MGEF staff.
H.C. Wainwright anticipates that Atlas Lithium will adhere to its production schedule and start generating revenue in the near future. This expectation is bolstered by the recent shipment of the company’s lithium processing plant from South Africa to Brazil and the forthcoming installation and commissioning of the plant.
The firm's analyst reaffirmed the Buy rating and revised the stock price target to $19.00 from the previous target of $41.00, indicating confidence in the company's continued progress and near-term production prospects.
In other recent news, Atlas Lithium Corp. faced a notable change in its stock target by Roth/MKM, due to weak lithium prices and a delay in its initial resource estimate. Roth/MKM reduced the price target to $25.50 from $36.00, while maintaining a Buy rating for the stock. The company's decision to bypass the preliminary stages and move directly to a Definitive Feasibility Study (DFS) was also factored into the new price target.
Atlas Lithium has undergone a significant shift in its leadership team, appointing Tiago Moreira de Miranda as its new Chief Financial Officer, Principal Accounting Officer, and Treasurer. This leadership change follows the resignation of the former CFO, Gustavo P. Aguiar. Miranda, a seasoned financial expert in the mining sector, previously served as CFO of Apollo Resources Corporation and held significant positions at Horizonte Minerals Plc, Equinox Gold (NYSE:EQX), and Ferrous Resources Ltd.
Miranda's compensation package includes a monthly salary of $15,000, performance-based compensation, a discretionary bonus, and 40,000 time-based restricted stock units under the company's 2023 Stock Incentive Plan. These are the recent developments in Atlas Lithium Corp.
InvestingPro Insights
Atlas Lithium Corp. (NASDAQ:ATLX) is currently navigating a challenging financial landscape, as reflected in recent InvestingPro data. The company's market capitalization stands at $97.75 million, with a negative P/E ratio of -1.85 for the last twelve months as of Q2 2024, indicating that the company is not yet profitable. This aligns with the InvestingPro Tip that analysts do not anticipate the company will be profitable this year.
Despite these challenges, Atlas Lithium shows some positive signs. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, which could provide financial flexibility as it moves towards production. Additionally, the company boasts impressive gross profit margins, which stood at 48.18% for the last twelve months as of Q2 2024.
The stock's recent performance has been volatile, with InvestingPro data showing a significant 35.12% decline over the past month and a 42.25% drop over the last three months. This volatility is consistent with the InvestingPro Tip that the stock generally trades with high price volatility.
These insights provide context to H.C. Wainwright's revised price target and maintained Buy rating. While Atlas Lithium faces near-term challenges, the positive developments in permitting and progress towards production could potentially improve its financial outlook.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Atlas Lithium Corp., providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.