Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

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 Apr 05, 2024 5:34pm
177 Views
Post# 35973981

RE:RE:Frontier Lithium/ JV Stocks

RE:RE:Frontier Lithium/ JV StocksIt is very important. It is not just FL where extensions of discoveries and very important milestones like the Mitsubishi partnership are simply not leading to a re-valuation and a higher share price. It is pretty widespread across the microcap mining and energy companies.  There is a group working hard to make some structural changes, as outlined inthat video. Venture funds, mutual funds, and banks who rent pipe to the back of of house to do algorithmic trading get automatic shot exempt status which can lead to manipulation with no oversight. Short exempt status was not designed for these traders or this type of trading.

The way the markets are supposed towork  (and did in past)  is that discoveries and important benchmarks toward the desired outcome in the business plan lead to re-rating of valuation and a  and a new higher proce equilibrium. Then the share holders are rewarded and the company if it needs capital can sell a smaller number of new share at a higher price to efficiently raide new dollars. The process can repeat as progress is made.  What is happening is that the share price does not increase as the value increase, the company sells increasing numbers of shjares at lower prices, the original shareholders are punished, the company is raises very little money from the new shares and is starved  for capital to grow.  That should sound familiar because it is happening widely in this sector, not just to FL.  It is egregious that the partnership with Mitsbishi where 7.5% of PAK project was purchased t about double the value per share of the whole company, where Mitsubishi agreed to buy another 17.5% at a price determined by NAV in the feasibilty study with no reference to share price, wherethe  project aligns with the co-operative agreement of Canada and Japan to develop supply chain for EV and battery prodution inCanada, and where the CEO and Ontario finance minister are already having talks in Japan this week - it is egregious that all this had no impact at all on share price, no re-rating of valuation to reflect increased potential value of the company. That is not normal.

<< Previous
Bullboard Posts
Next >>