Ann: Joint Venture with Ganfeng - Overview, page-85

It is becoming a little breathtaking to read the number of apologists here for what has been an absolutely dismal market response to what should be a transformational event for both the company and its market cap. It is almost like some of you think the inability of the share price to hold its gains on two announcements of high significance to enterprise value - the awarding of a $360m gold mining services contract and a deal that, at the very least, values a substantial Li asset that was otherwise not priced in - is a strategically tremendous thing that represents all manner of great future opportunities for “nod nod, wink wink, the smartest people in the room”. Yes, we all see good things down the line with FFX, that’s presumably why we invested here to begin with, but get real: the sell down has been relentless. Trying to nonstop spin this as positive is simply absurd.

Announcements of significance that do not translate to incremental sustainable growth in the share price are not positive events. They point to something wrong with the wider market’s perception of the business or to the announcements themselves. This is a disappointing result - you can’t credibly varnish it any other way. And you don’t have to be a recent arrival, a short seller, a penny flipper or a downramper to state this (for which you will then be berated or subject to varying degrees of condescension). Behind closed doors, FFX management must also be a little bewildered and disappointed at the market response. Tonight’s closing price still ridiculously undervalues this business.