Sprott initiates coverage of Firefinch, page-99

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mystikal

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15/04/21

12:50

Post #: 52488229
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Originally posted by mystikal: ↑

having a proper read last night something i liked about it:

1. 176% IRR for Open Pit (8 Years) which is massive
2. Looking at the comparables table we priced as a developer but undervalued by 2 times for producers
3. NPV doesnt include the underground operation
4. It does not include Koting, Upgraded Viper, Upgraded Ntolia, Upgraded Pit 5 or Upgraded Domba
5. I believe in total it will include another 1Moz in the short term from the above, pushing the EV/OZ multiple even further down (i.e. more undervalued)
6. If the lithium play outs well demerger it means it could do very well for the SP before and after, as they've only attributed $60m to it in the valuation BUT they've also excluded $60M of the Underground gold NPV, so once the demerger happen the price target for the gold should stay roughly the same or improve coz increased Moz and including the UG opportunity if it gets proven up
7. Further potential Upside is 685 km2 of untapped land, we have also have short term derisked targets as mentioned in previous posts
7. I think getting a debt facility will be very achievable.

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I forgot to add that the AISC was conservative at $1250 USD roughly, i rkn with further optimisation we can get that lowered as well.

Also in their catalyst for the stock they dont mention the demerger
Also the 50 cents target already has the african discount as well! as we were only using west african comparables...
plenty of upside soon and plenty of news soon!

FFX Price at posting: 28.3¢ Sentiment: Hold Disclosure: Held
27 Upvote

0 Great analysis

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Sprott initiates coverage of Firefinch, page-99

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