It may be many years till either company has a MC that the...

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clancey

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23/02/22

11:07

Post #: 59755815
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Originally posted by Red Baron: ↑

The market hates uncertainty, this Russia/Ukraine situation could play out for quite some time before either Russia invades or pulls back. It's probably in Russia's interest for this standoff to keep going while Ukraine is worn down & squashed economically.

My point is, the general market could be down for quite some time. It won't affect operations at Morila or Goulamina, however we could well have a market cap similar to today's $725m going into the demerger. We had 6% wiped from our market cap today, AVZ & LTR lost 10% so it's not just us.

@keen as answering your question, yes, based on Mike's guess at 50/50 valuation for each business, and based on today's 61c share price, your 30c wouldn't be too far out. Having said that, I think initially we'd get sold down below that, as those only wanting LLL sell FFX before a proper valuation occurs. I don't think it would take too long for the market to realise a $350m market cap is too low for a company that has $100m + in the bank, 20% of LLL, 100k oz production this year increasing to 200k in 2024.

In fact compared to their peers, both LLL & FFX will look incredibly cheap. I think at the moment Lithium investors look at us and say $800m is a fair price for Goulamina forgetting about (or not interested in) the Gold. Gold investors say $800m is about right for a Gold producer forgetting about (or not interested in) the Lithium.

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It may be many years till either company has a MC that the current SH's will think of as being a fair representation of their value.

Last edited by clancey: 23/02/22

FFX Price at posting: 63.5¢ Sentiment: Buy Disclosure: Held
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It may be many years till either company has a MC that the...

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