Sprott initiates coverage of Firefinch, page-282

IMHO the Life Of Mine Plan (LOMP) is very deliberately understated. I think everyone was expecting a bit better and a bigger share price move, but the market gives what it gives, nothing more and nothing less.

There is a beauty to such a conservative LOMP, being it will be easily beaten on just about every metric over time by just returning the mine and plant to the production throughput of Randgold/Anglo.

Think of the possible future announcements, like ....
Crushing/grinding circuit working 15% above planned rate.
New drilling increases resources and reserves above LOMP.
Higher grade to processing plant lowers AISC..
Gold production exceeds LOMP by xxx% (OK I cheekily put in 3 x's)
Maiden profit exceeds LOMP by xxx%!!

A conservative LOMP allows management to continue looking good, continue to beat market expectations and allows a continuity of positive announcements for a long time to come. So far the BOD/management are playing a flawless game and I don't expect anything less with the lithium partner/demerger.

A curiosity about the market is how good news seems to beget good news and bad news begets bad news continuously for a stock. We have been getting good news for over 6 months now, announcement after announcement, there is no reason to think this will stop. The continued good news makes more market participants pay attention over time, dragging in more traders/investors and pushing up the SP.