Lotus Resources upgraded to BUY rating off the back of Hylea sale: BW Equities

Lotus Resources upgraded to BUY rating off the back of Hylea sale: BW Equities

The sale means the company can focus on its Kayelekera uranium asset and will provide additional funding to underpin the ongoing development program. The company will retain exposure to Hylea by way of shares in Sunrise Energy Metals. Lotus Resources Ltd’s ( ASX:LOT ) recent sale of its Hylea Cobalt Project in NSW to Sunrise Energy Metals (ASX:SRL) has secured the company a BUY rating from BW Equities analyst Daniel Seeney.

The company will divest its 100% interest in the Hylea Project for $1.0 million in cash and $1.5 million in Sunrise shares.

Seeney said: “We view this as a positive step in order to focus management attention on the company’s primary asset at Kayelekera, as well as providing additional cash to underpin the ongoing development program.

“The shares are again trading at a reasonable discount to our valuation and as such we upgrade our rating to Buy.” Retaining exposure The Hylea […]

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