A great company to chose. It has been a 7 bagger in the last 12 months and now has a Mcap of $1.3b, for a company with no income, and has to raise all the capital for building their mine.
There initial lithium mine will be around the same size as ours, with a bit less production, based on their PFS. Their mine still needs $325m in funding, but they will own 100% of production, so dilution coming up for them.
Let's see ... FFX 174.4kt of Sc6 production(fully funded and offtake agreement) plus a gold mining operation plus prospective gold ground (K3 21m at 13.95g/t) for $360m in Mali (with ~$60m in the bank and no debt) or .....
Then... LTR 350kt of Sc6 production needing to raise $325m, and some prospective gold and copper ground (no outstanding intersections, just hints) for $1.38b in Australia (with ~$16m in cash, no debt)
On a risk/reward basis LTR has much further downside, especially on any lithium downturn, plus need to raise a bucket load of cash. I'll take FFX on those stats every day of the week, in fact IMHO Australian lithium companies are now way overvalued for any prospective returns in the next couple of years.
LTR could fall a lot further than FFX and the potential upside is nowhere near as much, unless they get lucky with a copper/gold find. AS I've stated several times, FFX don't need luck, just a lot of work, and now any capital requirements have also been met, while LTR has huge capital requirements.
I think you are mixing up past performance with future potential thinking LTR is a better investment at the current prices. Do you have anything really worth looking at because I can't find them!!
Expand
