FFX 0.00% 20.0¢ firefinch limited

General discussion, page-1633

  1. 5,286 Posts.
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    I will hold both companies after the split. Rider of course is any bear market that we may see.
    The DFS presumes a high average price price for Lithium for 5 years after production. During that time some holders will lighten during big SP spikes driven by traders. Those accumulating will just follow traders back in.
    Dr Cowden in his wealth of experience said one mine companies are not much fun. You have limited scope for SP growth after demand/supply eventually stabilise. So what LLL eventually looks like will depend on whether they want to grow via acquisition and or discovery or be content to be like a 'utility' and just pay decent dividends year after year.
    Dr Cowden has hinted that he wants to acquire to grow FFX gold.
    They have set up a great platform to launch from. Recent raise of $100 mill will get production firing quickly and almost 'future proof' the business, Should not take long to accumulate a 'war chest' of $$. The 20% ownership of LLL will strengthen the balance sheet and provide a huge amount of cash towards a future acquisition.
    A lucky decent strike on the 685sq kms will provide a big SP boost.
    So i will hang on and wait for SP spikes before lightening either stock. If an uptrend is in place on either stock i will trade it.
 
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