The fundamentals are there but there are a lot of unknowns that will make anyone nervous especially when every other stock in the sector is moving ahead.
For eg.. Don't know what the ratio of the free share is .. 10 to 1 .. 5 to 1, etc. So people who are in for lithium may see better bets in other stocks as they may hold 100k shares @65 cents today but may only end up with 20k shares in Leo lithium and who knows what price they do the IPO at and how much will they dilute.
And now we have funding talks here but the $$ can always be raised at a later date (we have enough resource to produce for many years and funding from Ganfeng for the mine so why talk or do CR now which will not benefit the shareholders but just their friends).
This CR can be done when the share price is high which LEO will easily shoot up to post IPO. I hope the management doesn't do what they did before diluting it to the neck and work with their friends and work for the shareholders for a change.
Why is this required as soon as possible? This program can wait for 6 months or so ... right?
DRILLING PLANNED TO EXPAND RESOURCES AND RESERVES TO SUPPORT EXPANSION • A major drilling programme will commence as soon as practicable to target maintaining current 23-year mine life at higher production rates • Inferred Mineral Resources total 43.7 million tonnes at 1.35% Li2O and assuming successful drilling, significant conversion to Indicated Resources and Ore Reserves is expected • Exploration targets defined outside those included in the existing Mineral Resource • Almost 50 kilometres drilling is planned over the next two years
FFX Price at posting:
64.0¢ Sentiment: Buy Disclosure: Held
