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Frontier Lithium Inc V.FL

Alternate Symbol(s):  LITOF

"Frontier Lithium Inc is a Canada-based mining exploration company engaged in acquisition, exploration, and development of mining properties. It focuses on elements like lithium, tantalum, rubidium, and cesium by exploring for lithium, cesium and tantalum classified pegmatites. Geographically it operates in one segment, Canada. Its main project is the PAK lithium project."


TSXV:FL - Post by User

Comment by Margin321on Oct 12, 2023 12:13pm
99 Views
Post# 35680742

RE:RE:My patience is waning here

RE:RE:My patience is waning here
You are right, patience is waning.  But what is the option?   There is still a good story here.  If you sell there will probably be a new bridge and an agreement with VW or other deep pocket partner, and the mine construction will begin. And you willhave seller's regret.  I cannot see leaving at this point. Too late to salvage much, Of course you can still lose 100% of what is left, but that is always the case. And you can put that remant into something that you think has better prospects, not from where you started but from here. That sometimes makes sense, but you really have to put blinders on following the company you bailed on. Just too painful to ride something down, finally capitulate, and then watch a reversal. Though I have done just that.

My own approach is to hold on if I  believe the basic story is still intact, and to leave only if there is a major fundamental change in the story.  The basic story meaning the synthesis of all the elements of my due diligence that led me to buy shares in the company in the first place.  In the case of FL I believe the basic  story is still intact. It is just stalled at the side of the road. We do need more lithium, and the supply chain has to have a major NA component and not rely on Australia and Chile to produce it and China to process it. And FL has a large world class resource that is low in iron, has great width, is easily mined  with open pit with little overburden.  Like many pre-production resource companies they do not have ready access to capital and that has been compounded by high interest rates, tightening of credit markets, and low share price rendering secondary stock offerings very ineffective way  to raise capital. They have to solve this with appropriate partnership with end user either automotive manufacturer or battery supplier.  Or they have to sell the company. The former offers potential for higher return for current shareholder.  The latter would at least have some little premium. And that is somewhat of an insurance policy aginst just failingand going BK. The ongoing drilling does add to the potential value to an acquirerer.
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