'It’s about to happen ladies and gents….as per paydirt conference today, at approx 1hr 30min:AC: “we have just, hopefully in the last few days, finished the complete corporate restructure to enable the demerger of our lithium asset….”https://vimeo.com/event/1817412/videos/675757404/password: paydirt'Morning all,
Note the post from
@Karl89 from a week ago, and an appropriate segue into the rest of this post (in point form).
FIVE REASONS TO BUY / OWN FFX NOW (all IMO)
1. Demerger announcement with details very close IMO. Given AC's comments above, it seems the market can expect an announcement any day now re: details of the demerger and record date. Also, Mike had reiterated "mid-late February" in a recent interview so an announcement is more than likely very close IMO.
2. Massive leverage to the underlying commodity/s. We are in the early stages of a once in a lifetime commodities supercycle. FFX (and soon LLL) the perfect company/s (being highly undervalued ATM) to supercharge exposure to appreciating Gold & Lithium prices (see below).
3. Gold! a)Gold futures up US$16 overnight
View attachment 4101239b) GDXJ (of which FFX is a constituent) also appreciating nicely, up YTD and has recovered
all of its losses since the market downturn in January.
View attachment 4101335c) A significant multi-month
Gold breakout has occurred IMO, after more than a year of consolidation. Next stop in 2022?
US$2000 conservatively IMO.
View attachment 4101281p.s. Sprott's comment below re: FFX
A$60m cash buffer assuming 97koz this year at Morilla now looks conservative IMO.
View attachment 41012904. Hello Lithium! Prices continue to soar.
a) Battery grade LCE now
over 400,000 yuan/t. In July 2021, I can recall Lithium shareholders being over the moon when prices hit 100,000 yuan/t (US $15,750/t). So to more than quadruple that in a little over 6 months is nothing short of extraordinary IMO.
View attachment 4101311b) Lithium SC6 heards - $4500/t! The flow-on effect of higher spot prices will become evident in longer term contract pricing for the remainder of this decade. In short, this is MASSIVE for Leo Lithium's underlying profitability. Talk about a gigantic cash cow in the making (with AISC for LLL expected in the low-to-mid $300 range).
5. It's business as usual in Mali.Notwithstanding the current sanctions and Australians' perception of Mali, companies operating in country overall are doing quite well, and its business as usual for all of them. Some are even posting new highs YTD. FFX will follow suit IMO and recover back to the 80c-$1.00 region prior to the demerger record date (again IMO).
View attachment 4101425FFX - poised for a run north IMO - lots of newsflow expected in the coming days and weeks.
View attachment 4101533The above is a short term price target. For the medium term, remember these price targets?
View attachment 4101581View attachment 4101584GLTA
Cheers
Elpha
