RE:RE:RE:RE:RE:Margin, Rio Tinto Takeover, High Purity Lithium,NominalCostsThe best hope for a bid on FL is if a major sees more ore there than is evident today. The upcoming PFS is a known entity, we know roughly the new tonnage, spod price and extraction cost, the rest is a math exercise any analyst can do. Given the needed capital and the probable dilution, it does not justify a large premium to the current price The exception is if the Bolt target gets drilled and shows promise, and the Pennock target 20 km away. If either or both of those are drilled successfully, then options open. The real Rio Tinto would be more interested in a larger deposit, and able to bring it to production. Additional ore body targets could open JV possibities, as the Pennock deposit could be mined seperately.
If the Pennock target had 4 holes that brought the same type and grade of ore as Pak and Spark, a major could bid north of the $4.50 or so it would take to get control here. Mgmt could partner that deposit especially if the power line is in, and the road will be clarified by the time drill results are in from the 2023 program. All of a sudden a second viable deposit has a lot of value. Non dilutive financing then becomes possible.
The Walkers seem determined to build this out,and that is admirable but a recognized major would add horespower to their efforts. If a deal was structured properly both parties would be more effective than the one person show we have now. Until they drill those deposits the options are limited.
More detail on a winter drill program should be out soon, and if they add some exploratory holes in these deposits that opens the "blue sky" potential that would be needed to get a major interested.
Best of luck