We are initiating coverage on Jindalee Lithium Ltd. with a BUY rating and a A$0.70/sh target price. Jindalee is advancing the McDermitt lithium clay project in southern Oregon, which has a 21.5Mt LCE MRE (the 3rd largest in the US). The company is in the process of spinning out McDermitt via a de-SPAC transaction and listing it on the NASDAQ. Following this, JLL plans to advance McDermitt to a Feasibility Study (FS), infill drill to upgrade I&I resources, and perform metallurgical testwork to improve recoveries and evaluate Mg sulphate as a co-product, which could help lift the project’s US$3.23B NPV8% outlined in the 2024 PFS. McDermitt also carries a FAST-41 federal permitting designation and an executed DOE research partnership, underpinning a credible path to future permitting and funding. Given Jindalee is a near-term catalyst-rich story, with the NASDAQ listing targeted for H2/26, followed by a drilling and metwork program, as well as a Feasibility Study, we see the current ASX valuation as a compelling entry point ahead of a significant potential re-rating.
Q3/26 Commodity Price Update – Raising Precious and Base Metal Price Forecasts
Red Cloud Research is updating our price deck, transferring coverage and refreshing our top picks. We are raising our long-term price assumptions...