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AFR after market ...
Firefinch’s strategic review puts Leo Lithium in play;Treadstone hiredDec 14, 2022 – 4.11pm

With Firefinch’s mine dead, what’s left at is pretty much a stub of a company with cash and its Leo Lithium stake.

Firefinch says it has no debt, although it has yet to release audited accounts for the half-year ended June 30.

Gangfeng tipped to look at Leo Lithium

In Wednesday afternoon filings, Firefinch’s board stopped short of saying it was essentially putting a decent pre-bid stake for Leo Lithium within the reach of any potential suitors.

However, with just cash and Leo Lithium shares on Firefinch’s books, there’s only one way the review’s expected to head.

The most obvious solution for Firefinch would be to find a suitor that likes lithium and the stomach for geopolitical risk in Mali, where Leo Lithium’s project Goulamina is located.

Battery Metals supplier Jiangxi Ganfeng Lithium Co Ltd was tipped to look, given it already has a $US170 joint venture with Leo Lithium.

But the share parcel may also spur Leo Lithium’s camp into defence mode, if it reckons it wants to stay away from M&A for now.

It would be interesting to see where the sale price lands against the $150 million odd in its assets.