Originally, I bought in for the gold, and while LLL is on a path of significant lithium dominance, I find myself frequently revisiting where I believe the gold will venture.
Morila is, without question, a money making asset. As the ASIC continues to drop, the exploration continues and I strongly believe minds will be blown by resource upgrades and our new life of mine plan. It should be noted at this point that the demerger will happen AFTER our new LOM/ resource upgrades for Morila is announced.
acquisition has been floated for some time now. Both Cowden and Anderson have stated a buy or be bought narrative with FFX (gold). I have spent significant time, since the Morila purchase, trying to work out what that could mean and I have been narrowed down to a view of the following.
firstly, I believe FFX is focusing on a Mali dominance. It has been abundantly clear recently how not only small in number the true production players are of Mali, but also the influence that plays on their GDP.
I believe FFX (gold) next steps will be more interested in Acquiring a ready made player. There are multitude of reasons for this, however to put it simply, I believe Morila is an asset that will have continual exploration upside, and heavy expansion would complement it well.
I choose not to go into details on the following. All I will say is I have my reasons( that I have put a lot of time into) as to why these two company’s could very well see a FFX merger with FFX being the controlling party.
Firstly hummingbird. this acquisition makes sense to me as an expansion plan. Morila would stay the key asset however this would expand FFX (gold) profile quickly over multiple assets. The Market cap is low, and FFXs Mali arm would strengthen.
I can’t however stop looking at Resolute. As the company continues to drown in debt, I feel a merger would be largely beneficial to holders of both companies. Im drawn tot he idea of FFx(gold) keeping a debt free business model to help pay down the debt currently held by resolute. In fact, once resolutes cash on hand is directly shot into their debt arm, their debt becomes quite manageable… something not possible for them to currently do. Added ravenswood 2024 payments, it quickly becomes clear why striking them over the course of the next year becomes favourable to FFX (gold) holders. I see no easier way to rocket to a 500k+ oz company In 2023 with an extremely strong south eastern mali profile…. A player like no other in the region.
I believe FFX would hold more chips in the merger of the businesses, with FFX having other pathways, however resolute continues debt minefield…. A minefield Morila would quickly correct.
in short, A strong, steady increase would be to chase hummingbird…. To become a major overnight, chase resolute.
just my most recent thoughts.
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