2021 is the year for GOLD & Lithium stocks in the mining space. FFX is the only company positioned to truly capitalise on immediate and future growth forecasts and why I believe it will be the real mover and shaker in 2021 and why I predict this will burst into a $1.00+ stock and with it bring on new types of investors (brokers /insto's) and super funds ASX300 etc..
789.1M SOI + 29.1M options (in the money) will leave FFX fully diluted to 818.2M SOI with a fully operational cash positive mining operation + one of the largest high grade hard rock lithium deposits globally dig ready and positioned to take full advantage of project valuations due to a drastically improved balance sheet from the gold operations. This is a very low peer comparison SOI and market cap which has been talked about for what is in effect a replacement A$370M mine + $50M+ drilling expenditure and data capture just on the gold mining operation alone. Company has ZERO debt and A$30M+ the A$4.3M in options once converted + revenue from current mining operations. There is no comparison on the ASX for a company at A$150M market cap with 2 major asset groups forecasted to grow.
https://malilithium.com/pdfs/AfricaDownUnderConferencePresentation05Nov20.pdfFFX's immediate priorities are clear and beautifully constructed -> Don't break anything post acquisition (So far so good), focus on low risk cash flow by extending the life of the tailings re-treatment and processing, commence infill and extension drilling at satellites and mine those higher grades (immediate upside to gold price movements),
https://www.fxempire.com/forecasts/article/gold-price-forecast-gold-prices-confirming-breakout-silver-and-platinum-leading-692136, and the bring back on Morilla with a de-watering program and power upgrade + minor refurbishment.
I'm excited about the higher grade exploration that can take place at both the satellite pits (mining ready) + Morilla circled below.
The plant will be processing 4.5M/t @ 1-1.5++ g/t once it is fully operational for the next decade+
This is basically;
4.5M grams of gold @ 1g/t at 28g/ounce = 160,000+ ounces per year @ US$1900-$2300++ per ounce = $305M per year.
At $1100 AISC that is $128M profit per year at $800 per ounce. These are relatively conservative in my mind.
Current market cap $150M.... Look at those circled areas (I am sure there will be some major finds as they develop the mining site).. Morila doesn't just happen once so if FFX find another purple zone anywhere it is instantly a multi-billion dollar company!
On the lithium the market went south but is turning up again and the company has noted they are in multiple discussions with interested parties.
It would be impossible for them not to be and they will be able to be very selective in who they deal with now they have a DFS completed.
During the last boom they rejected A$108M for it and I would be hard pressed to see this going for less than A$350M+ a controlling interest.
With both combined assets being realised for me this is an easy $400M+$400M for each + upside hence the $1.00 call in 2021!!!!
