Pitt Street Research ( – an independent analyst providing issuer sponsored coverage for small to mid cap ASX companies in the Technology and Life Science sectors – have completed an analysis of EcoMag.

In “Specialty chemicals upside – Attractive play on magnesium purity”, they provide a comprehensive overview of the project, drawing attention to particular items of merit:

  1. An inexhaustible resource with zero exploration risk and a positive environmental outcome.
  2. Massive scope for expansion at the initial site.
  3. Good access to critical infrastructure.
  4. Vertical expansion opportunities into multiple downstream products.
  5. A wide market across diverse industries.
  6. Successful pilot plant operation, buyer product testing and off-take agreements.
  7. Primary approval (mining tenure) in place.
  8. Northern Australia Infrastructure Facility funding in due diligence.
  9. A DCF valuation of ~A$347.6m based solely on the initial plant (excluding horizontal and vertical expansion opportunities).

Based on their DCF valuation, Pitt Street Research estimate a value in excess of $3 per share.

Download Pitt Street Research’s full report here.