"We recommend a Speculative Buy for LLL and assign a current valuation of $2.18 per share (previously $1.56). Without our Social License Risk discount our valuation would be $3.55ps. The Goulamina deposit hosts one of the world’s premier hard rock spodumene Resources. The project is funded for development, with commissioning of the process plant expected to begin in the second half of 2024. The demise of Morila SA may have repercussions for LLL and we account for this risk in our valuation. Key Risks Morila SA Insolvency We view potential repercussions from the failure of Morila SA to be the biggest single risk to LLL’s value. While separate corporate entitites, LLL was spun out of FFX shortly prior to issues being flagged at the Morila Gold Mine. Mining contractors and other creditors are expected to be owed tens of millions of dollars by FFX’s former subsidary Morila SA.
FFX Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held