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Fortune Minerals Ltd T.FT

Alternate Symbol(s):  FTMDF

Fortune Minerals Limited is a mining company. It is engaged in the exploration and development of mineral properties in Canada. It is focused on developing the NICO Cobalt-Gold-Bismuth-Copper Project in the Northwest Territories and Alberta that produces a bulk concentrate for shipment to a refinery that it plans to construct in southern Canada. It also owns the satellite Sue-Dianne copper-silver-gold deposit located 25 kilometers (km) north of the NICO Deposit and is a potential future source of incremental mill feed to extend the life of the NICO mill and concentrator. It also maintains the right to repurchase the Arctos anthracite coal deposits in northwest British Columbia. It also has a 100% interest in these 116 hectares of property south of Great Slave Lake with copper, silver, gold, lead and zinc showings. It has a 1% net smelter royalty covering 78 hectares of land positioned in a former silver mining district, located south of the Eldorado mining district at Great Bear Lake.


TSX:FT - Post by User

Bullboard Posts
Post by thecatherderon Sep 20, 2017 12:47pm
115 Views
Post# 26720337

As a result of your post.....

As a result of your post.....I looked briefly at Fortune since I am (unfortunately for past decade) an investor in early stage mining stocks. Some questions (all constructively meant) I have for anyone caring to comment:
1. The NICO reserves are way-y-y up north which to me means high extraction costs and expensive transportation of most anything both ways.
2. Fortune has a lot of cash needs and a lot of debt coming due in 4 years. I see they are working on a financing package but wonder about the timing issues (getting to financable proven reserves before the debt is due with its related interest accruals)...wonder who owns the debt and if they'd want to "foreclose" before more permanent financing is in place? Being optimistic on this, I wonder how many new shares would have to be given up for the upcoming financing round?
3. The share price, IMO, needs to be much higher before many tens of millions of dollars for mining and working capital are raised or the existing shareholders (I might at some point be one of them) will be almost 'diluted away'.
Any thoughts about how the next year or two should play out? It seems to me that the next round of financing can't be anywhere near enought to get the company in the mining business but needs to enough to take care of the existing long term debt assuming mining operations are 4+ years away.
If I'm wrong about the above...please give me your scenarios as I'm interested in this company as an investment possibility.
The Cat Herder
Bullboard Posts