Ann: Firefinch Successfully Completes A$100m Placement, page-145

Back in Feb 2020 when Doc Al was at Morila doing DD on Morila, gold was in a solid uptrend, peaking above US$2000 in Aug 2020. Lithium SP6 was down in the doldrums with producing mines being put on care & maintenance & others cutting back production.

With the bright outlook for Gold & the bleak outlook for Lithium, the Board took the opportunity to purchase Morila at a bargain price. If they had a crystal ball they would have known SP6 prices would go up 5 fold while gold floundered. The Board IMO made the right decision based on the information at the time. In fact even with today’s knowledge I still believe they made the right decision.

Now everyone is sitting back with hindsight complaining that the Gold business was holding back the Lithium business. In 5 years time who knows where Lithium prices will be or where the Gold price will be - just as likely to flip around. Gold is a lot rarer than Lithium! With hindsight if they waited another 6 months before doing the JV they would have got a better deal. Imagine the whinging we’d have on these threads if they did that!

Both Morila & Goulamina will have a long LOM. During that time the prices of Gold/Lithium will fluctuate. Both businesses have to be developed for the long term, that is what the Board is doing - giving each business the best chance of rewarding shareholders. For those complaining, what do you want them to do? Put Morila on the shelf? Drag out it’s development, or do your best to bring the main pit back into production thus ensuring it’s profitability. I know my choice & I know the Board’s choice.