HI mystikal, Yea, the company is in a far better position now...

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Finn

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26/11/20

11:44

Post #: 49160798
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Originally posted by mystikal: ↑

I think there a few avenues here which the Morila opportunity has openned up and that enabled us to have a lot of flexibility
1. We spin out the asset via JV to a newco of no less than 50/50 split, this would result in a partner coming in with roughly $200M USD (for CAPEX and some OPEX) and that would give a $400M postvaluation of the newco and inspecie new shares

2. Once our gold situation is stabilised (i.e. proven 2Moz+ via Koting, Morila 1.3 and Satellites) that would give us certainty of revenue for next 7-10 years. So we could wait till the optimal time and do it ourselves with our earnings alone....

3. If we get any customer interest/offtake in near future i.e. under a year or 2, through some smaller offtakes (might not be enough for a spin out), we could always accelerate via a debt facility against the gold to give you some context on how we are in a better position (40% saving on the interest!)
- RSG (African Gold Miner): 9% Interest Rate
- AJM (Australian Lithium Miner): 15% Interest Rate

4. Outright sale at the right price!

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HI mystikal,

Yea, the company is in a far better position now than it ever was, our market cap does not come any way close to our true worth. We have options, now we have cash flow as our first of many gold pours will attest to. We no longer have to take what ever deal is offered to us on our lithium resource, we can be selective and ensure the right fit for us.

Hold them tight people.............................very interesting times ahead

All imo and DYOR

FFX Price at posting: 15.0¢ Sentiment: Buy Disclosure: Held
14 Upvote

0 Great analysis

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