Atlantic Lithium announces intention to list on ASX

Ghana-focused battery minerals explorer Atlantic Lithium has today announced its intention to make a secondary listing on the ASX.

The AIM-listed firm said an ASX listing would be beneficial in several ways, including bringing its Ewoyaa lithium project and Cape Coast portfolio in Ghana to the attention of a ‘robust resources market’.

“The ASX market has seen a growing interest in green commodities of late, in line with the global transition to a lower carbon future, and we have seen the valuations of many companies involved in the lithium supply chain benefit as a result,” said chairman Neil Herbert in a corporate update to the LSE.

“We feel that listing on the ASX is timely, therefore, to enable a more favourable valuation of the company and its assets,” he added.

The move will extend the company’s shareholder base, provide greater liquidity and allow existing Australian investors to reposition stock held in the UK to Australia. Being an Australian company, the listing will also allow it to communicate better with its investors in the country.

Atlantic hopes to complete the listing by the third quarter of this year, although it stressed there is no certainty it will be admitted.

“This is a huge catalyst for a re-rating in our opinion,” said RK Equity partner Rodney Hooper on Twitter. “Given $ALLIF has a rapidly growing resource, is fully funded & is targeting 1st production in 2024 its P/NAV should trade closer to its peers. LT spodumene prices are likely to be 50% higher than analyst estimates.”