FFX (ASX) General discussion

Originally posted by WoodySpoon: ↑

I might not be against a new project, depending on what it is. But whatever it is you can assume the LLL holding will be diluted to hell with both the new project's shareholders and any subsequent CRs to get that project up and running - if not sold off altogether. I think this plan would see a massive stampede out of the stock, not only by the gold ETF and instos with rules about investments, but by sophs and retailers too. It would be a painful "remedy" indeed after waiting so long. You'd certainly want want Roy & HG called "testicular fortitude" to hang in there and wait for value while all around are bailing.

To stop that kind of bailing the opportunity would want to be very compelling. I'd previously postulated an opportunity in graphite lmight be good. $30 million goes a long way toward capex for a starter plant, and a half share of a project, But even graphite now seems very uncertain with advances in battery tech maybe going past graphite quite quickly in the next 48 months.

Is there an Aus based lithium play of any certainty that $30 million of our cash and the LLL holding gets a big chunk of? They all seem so inflated on a value basis. Putting it into CNB for copper in QLD would certainly get me very interested indeed. They would be primed to start development when the LLL holdng comes out of escrow, and also well placed to take advantage of the tax credits we have soon after. The LLL holding by June 24' and our $30 mill in cash goes a long way there. But they just did a small CR to get through next 9 months...

None of us have a snowflakes chance in hell of becoming Directors here without the support of multiple Top 20 holders. And I assume that would only come if the plan is hibernation until escrow ends, and then relisting as a shell after the LLL share distribution.
If you have organised that top 20 support, then I'll be more than happy to join the BOD.

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I think as you say, it very much depends on what Treadstone present us share holders.

The say 25 Million dollars may be an excellent amount to get us into a very good project - as you say...and if it were to be a 'back door' type of arrangement where we essentially buy another company and they bring in their own board and management - then that may be compelling enough for share holders?

If it were very compelling, share holders may indeed let the LLL holding stay within the 'new' company...true too...

I reckon there is a chance that FFX does become essentially a new company and also distributes the LLL holding back to share holders - IF the new company is not compelling enough? But, would that then demand a vote of current share holders?

Anyhow...

You bring up graphite.

Yes the need for it in batteries may change over time ...however I would be ok with a graphite project if it were compelling enough. I've been wanting to get a graphite outfit or two, into my portfolio, for a while now. I particularly would be keen on a outfit who produces Graphene from its own graphite.

ALL IMO