"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."
That is completely irrelevant. share price doesn't mean anything, its market cap that matters. Doesn't matter if that market cap is divided into 100m shares, 200m or 500m. Even at today's prices, the market cap of Leo will be $300m, drilling may cost US$3m over 2 years so the amount they'll need to raise for working capital will be small in relation to the total market cap. After the FID, I can't see it being spun out for less than $500m, even if they raise $25m, that's only 5%. The share price can go up or down that much in a day. FFX get to decide what price to set on the small amount of capital raised, the market will determine the market capitalisation of Leo.
"Why is this required as soon as possible? This program can wait for 6 months or so ... right?"
Is that a joke? You said your self you want Leo to be spun out at as high a price as possible. The sterilisation drilling is required to be completed asap so they can plan the mine site without putting infrastructure on top of Lithium. They can't start construction till they do this. Converting resource to reserve will add value to Leo as will drilling to expand the resource. I look forward to the reserve upgrade announcement prior to the IPO.
On another note, looks like the accumulators weren't getting enough stock at 63.5c and have had to move higher to get the volume.
FFX Price at posting:
66.5¢ Sentiment: Buy Disclosure: Held
