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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

Comment by MoneyMan123456on Sep 29, 2022 11:10am
166 Views
Post# 34994869

RE:Thoughts

RE:ThoughtsExcellent post and lots of good questions / analysis.  My 2 cents.

It's not clear what Fortune's strategy is.  They seem to be working towards the concept of building and operating the mine and processing facility internally.  From an outside perspective this is the definition of a clown show since it appears well beyond their capabilities and financial means.

I think most investors believe that selling / partnering with an established miner is the only way to proceed forwards.  It's confusing though that they are spending so much effort on identifying refining sites and optimizations, when they should be urgently updating their feasibility study.

In truth, I don't think anyone on this board can estimate a purchase price since the Feasibility study is comically out of date (given all of the positive and negative changes that have occurred in the last 10 years).  

Most people on this board seem to obsess about the 'number of onces in the ground' and the overwhelmingly positive "macro environment", while completely ignoring the realities of building and operating a mine.

Potential revenue is only 1 side of the coin.  On the other side is construction, operation, regulatory, interest, taxes, etc.  

In my opinion, the mine is only marginally economic and requires flawless execution to avoid it being a money pit.  

This is why, I believe, there have not been any white knight suiters emerge to make shareholders obscenely wealthy.  There is just too much risk building and operating a low margin mine in the North.

The secured loans also make it more likely the lenders will just push it into bankruptcy and undertake to market and sell it themelves (potentially netting a massive return on their loans.

All of this, only my opinion of course.
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