Global Lithium Resources Ltd (ASX: GL1) shares have jumped substantially in recent weeks, as the company has secured key approvals for its Manna lithium project in Western Australia.
The shares are up slightly more than 200% over the past 12 months, but the analyst team at Shaw and Partners believe the share price has a long way to go yet.
They've got a buy rating on the shares, and a very bullish share price target, which I'll get to shortly.
First, let's look at the company's recent announcements.
Image source: Getty Images
Approvals coming thick and fast
Firstly, in early August, GL1 announced that it had received approval for the Mining Development and Closure Proposal (MDCP).
The company said at the time:
The approved MDCP enables the establishment of important early works and critical infrastructure at the Manna mine site, directly supporting the integrated Manna-Nova strategy. The proposed Manna mine, located 110km east of Kalgoorlie-Boulder, is planned to operate for at least 14 years. The Project's MDCP approval contemplates the development of multiple open pits, comprising one main (Manna Main) and two satellites (Manna North and Manna South), waste rock and dry stack tailings, ore stockpiles, accommodation village, bore field, topsoil stockpile areas and associated mining infrastructure.
The company said the approval would also give more confidence to a final investment decision for the mine, which is targeted for the fourth quarter of 2026, with the first direct shipping ore then targeted for the second quarter of 2027.
Then on 20 August, GL1 announced it had received the Native Vegetation Clearing Permit for the mine, completing the primary state approvals needed to begin early works. The company's groundwater licence was also approved.
GL1 Managing Director Dr Dianmin Chen said:
Three major approvals in a fortnight is a credit to the professionalism of DMPE and DWER and to the depth of our own team's technical work. Manna is now cleared on the ground, cleared to take water, and ready to move into construction. These approvals pave the way for starting early works and then mining operations at Manna, which will generate jobs, boost economic activity in the region, and benefit all stakeholders including our local communities for many years to come.
Global Lithium Resources shares looking cheap
Shaw and Partners said GL1 had substantially derisked the Manna project by securing the approvals.
The broker added:
Instead of committing to a standard greenfield build, GL1 management's capital-light approach has successfully preserved Manna's cash and strategic optionality. This positions Manna to capture the near-term market window, where lithium prices are expected to benefit from sustained supply deficits and growing demand over the next three years.
Shaw and Partners has a price target of $1.75 on GL1 shares, compared to 67.5 cents currently.
