Or...it could go the way of it's last lithium project which FAU...

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seventhseal

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20/02/24

06:05

Post #: 72492024
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Originally posted by chicodechico: ↑

As to whether it is the right time or wrong time for a lithium acquisition, if you are a buyer of a project and interested in the long term, almost certainly better to be buying now (when the lithium market is in the doldrums) than a couple of years ago when prices were so high. I think lithium will almost certainly return - just a question of time. As to market valuation, this project does not look much different to the transaction that TYX recently did (just over a year ago) in Angola for a lithium project, and they now have a market cap of around $50m, up from around $3m.
FAU has a market cap of $5m and is in the same position TYX was back then. I don't see much obvious difference between the projects or their state of advancement. Most holders would be very happy to see our market cap increase from $5m to 10 times that, or even 5 times, or even 2 times that.

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Or...it could go the way of it's last lithium project which FAU directors and major holders spun out into Octava to much fanfare (and disgust of FAU retail holders) and destroyed 75% of shareholder capital in the same timeframe. Given the starting point is a 40% dilution and the track record of this ragtag cowboy outfit is putrid when it comes to use of capital and exploration success .001 or worse is an infinitely more probable outcome than pumpy suggestions of ten baggers.

Last edited by seventhseal: 20/02/24

FAU Price at posting: 0.3¢ Sentiment: Sell Disclosure: Not Held
1 Upvote

0 Great analysis

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