Ann: Joint Venture with Ganfeng - Overview, page-86

@camban Your obviously disappointed at the immediate reaction of price, but it doesn't mean anything in the big picture. Markets mis-price companies all the time. IMHO the market is far from efficient and just the last 16 months have proved that beyond any doubt.

In February last year the All Ords index was at 7250 points, a record high. Just 4.5 weeks later it was down to 4450 a fall of 38%. Then fast forward to yesterday when the all ords went above 7650 a rise of 72% in 15 months. Which price was the 'correct' one??

Or we could look at Fortescue that was around $1.50 in early 2016 ($1.44 the low). The market clearly had that price incorrect as they were the lowest cost producer and had the debt well under control. The price eventually corrected itself and is now many bags higher.

It's the market mis-pricing companies that gives us opportunities. Middle of March 2020 was a huge mis-priced opportunity across the board, right now is one in Firefinch IMHO. Please note we have risen just on 12 bags since the low in March last year, and up 2 bags in 6 months with the SP currently trading at the highest price levels this year.

A positive announcement does not always mean instant rise in the SP, never has and never will. There have been lots of profit taking from those with a short term horizon, but that selling has all been absorbed by plenty of demand. There has been demand for 45m shares in the last 2 days at the highest prices this year.

We have a multitude of positive announcements coming up in the next year or 2. There will be plenty where the market doesn't react how people expect, and others where it has outsized gains for the announcement given. It all come down to expectations of investors.

The announcement yesterday was long expected, with many taking their positions, often short term ones beforehand. In my experience the announcements that are highly expected, don't tend to move the SP much, no matter how bullish. We all expected a sale of part or all of Goulamina, only the price and 'conditions' were unknown. Those that planned to sell on the positive announcement have done so, are still doing so, the buying by larger players will happen over time as they do their calculations on 'value'.

If we were to stay at these prices for any level of time, I could see lots of 'friends' of Ganfeng buying up a great deal of our shares as we are only valued at just above the deal valuation with very little for the Gold operation.

The current mismatch between 'value' and SP will not last too long IMHO, as the real value in the deal with Ganfeng is the full legitimacy it has given the Goulamina project in every metric. The market will not stay blind to that IMHO for very long.