Aside from fooca, I received a call earlier this week in response to my inquiries. The company is responding to emails from shareholders who are reaching respectfully.
While I don't have all the information and some may be frustrated (including myself!), I recommend being proactive and reaching out to the company directly.
Below are some key points from my call:
Settlement Update:
Discussions with the Mali Government are still ongoing noting there is an offer on the table, and a sale is pending to finalize a settlement.
Regarding timing and the recent announcement made on 19th Jan, there was an expectation that it would be closed out quickly.
Fact of the matter is that things move at a different pace in Mali and other mining companies are experiencing similar delays (e.g. recent comments from B2Gold during their Corporate Presentation 24 Feb 2024 reinforces this).
The company acknowledges the delay and is considering whether they put out another statement on that, but there are some key developments that they are waiting to see pan out first that could swing things in their favour.
Ganfeng is actively involved in leading negotiations for a favourable outcome.
Apparently, the Mali Government is chasing everyone else as well noting Goulamina was targeted first as they are in pre-production phase and have already invested a couple hundred million into the ground.
The company expects to be the first to reach a settlement, which would reflect improved stability and address sovereign risk concerns.
Equity Analyst Reports:
The company is in direct contact with equity analysts (e.g. Wilsons’ Advisory) and understands their concerns about sovereign risk, which has resulted in the disconnection of Leo Lithium’s fundamental value from their target price.
Reaching a settlement is seen as a way to mitigate some of these concerns and demonstrate stability.
The project itself is progressing well from a technical perspective and there are a lot of positive things to share as it's looking pretty healthy.
Key permits are still awaited but are a key focus of these discussions so it is expected to be resolved soon as part of this.
Transportation Logistics:
Sanctions have been lifted, but the impact of Mali leaving ECOWAS on the movement of goods and people remains unclear.
The company is prepared to respond appropriately once more information becomes available.
Impact of Firefinch:
The Mali Government is now viewing Leo and FFX asseparate entities. However, FFX's past actions (e.g. leaving Morila) initially strained the relationship.
Ganfeng's involvement has strengthened Leo'sposition.
Ganfeng's Partnership:
Ganfeng remains very comfortable with the project's development.
ASX Communication:
The company is disappointed with the ASX's lack of explanation regarding the recent announcement delay. This will be factored into future communications.
Resume Trading Communications:
Investor Relations strategy (e.g. presentations, roadshows) has been developed and will be refined once resolutions are met.
The company plans to focus on project news to highlight its value and progress, which unfortunately has been overshadowed by recent events. They will also address all uncertainties and perceived risks where possible.
Absolute clarity on some aspects (e.g., the exact percentage the Mali Government will claim out of their full entitlement) might not be available immediately upon resolution. This is a similar situation that other mining companies are facing at the moment.
Social Media:
The company is aware of unsubstantiated information being shared via frequent offenders and has contacted Hotcopper for moderation. Shareholders can help by reporting such content.
(20min delay)