Very short summary I wrote last week based on the recent...

Very short summary I wrote last week based on the recent investor presentation (refer to my older posts for large form summaries of both the gold and lithium wings of the Firefinch taking flight):

https://www.investi.com.au/api/announcements/ffx/14dc1d84-ebf.pdf

Key points:

• $305M MC FD at $0.38
• Recently acquired the Morila gold mine in Mali at an extremely attractive price with a 2.43Moz resource
• Producing from tailings for the past few years, as of this week commenced open pit mining of satellite deposits, ramping to 80kozpa and then to 200kozpa
• Just released Life of Mine Plan with 1.45Moz reserve 160kozpa average production, 10 year LOM, $1,124/oz AISC, low CAPEX
• I have calculated NPV ~60cps based on the LOMP, which will obviously increase as additional resources & reserves are delineated
• Huge exploration upside evident with large high grade extensions demonstrating Morila is open in multiple directions, not to mention the dozens of satellite targets on the tenements surrounding the mine
• This week announced a new discovery at the K3 satellite (21m @ 13.45g/t) which could be the tip of another Morila-like system - Morila 2.0?
• Gold price is testing resistance which could result in a huge break out
• I expect the mining inventory will multiply over the next couple of years, and front loading optimal & high grade ore will result in increased production, reduced AIC allowing for M&A growth opportunities
• A huge near term catalyst is that the company also holds a world class spodumene lithium project (large, high grade, low cost, strategic location to Europe). Macquarie has been engaged to find a partner for financing, EPC and offtake as well as demerging the asset into a new listing. From recent company announcements, the new listing is expected to be valued at >$200M, so will provide a significant kick to FFX if achieved. This is scheduled to be completed by the end of this month.