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Frontier Lithium Inc LITOF


Primary Symbol: V.FL

Frontier Lithium Inc. is engaged in the acquisition, exploration and development of lithium mineral properties in Ontario, Canada. The Company is engaged in a pre-production business with a focus to be a strategic and integrated domestic supplier of spodumene concentrates for industrial users as well as battery-grade lithium hydroxide and other chemicals to the electric vehicle and energy storage markets in North America. The Company’s flagship asset, PAK Lithium Project, located about 175 kilometers (km) north of Red Lake, Ontario in the Red Lake Mining District and encompasses close to 27,000 hectares (ha). It also has two other spodumene-bearing discoveries, such as the Bolt pegmatite, which is located between the PAK and Spark deposits, as well as the Pennock pegmatite, located 25 km northwest of the PAK deposit within the project claims. Its lithium products include spodumene concentrate and lithium hydroxide monohydrate.


TSXV:FL - Post by User

Post by lithomonon Aug 16, 2023 7:02am
320 Views
Post# 35590448

Dogger - Objective Reasoning

Dogger - Objective Reasoning
About PMET valuation high and current valuation.  Look, nearly everyone on this forum indicated PMET was overvalued, so, I believed you and naturally, the price needed to fall back from its near $20 highs, as per consensus on this forum.

However, with Frontier Lithium, it is actually quite shameful, the progress timeline and share price not coming anywhere close to fair and typical value which was probably where Katie Lachapelle had the project reasonably valued.

Lachapelle told FL what needed to be done next (if FL was listening to her closely).
Her direction, similar to my message (focus on operations), and the obstacles to operations, then a potential re-rating of FL.

Perhaps Hooper and Kline prediction of around high $7's was a bit of a stretch, but not really, if you really considered what FL was/is discovering, that is, if Frontier took the motivated and experienced steps and moved at the appropriate pace that Hooper and Kline would have done, given this incredible string of Lithium deposits (I believe Kline utilized the expression, Frontier moving at a tortoise pace).

That is why I say (and the seasoned industry experts are also saying it), how could one screw up so badly???  I actually get tired of hearing it when it was obvious what needs to be done.  

For Frontier to lose $200-Million and then another $100-Million in market capitalization in a year when the Company didn't come anywhere close to a reasonable market value in the first place as analyst and investor consensus domestically and abroad had anticipated, thus, given the metrics of FL's Lithium finds from surface to depth and everywhere in between, it is actually quite shameful performance.

Had Frontier Lithium measured up to price target expectations in the $5 to $8 range and then subsequently experienced a $300 to $500-Million market cap pullback, I think investors would be more understandable of the situation.

The reasons for not realizing full market opportunity have been outlined.....enough said.......

Anyway Dogger, this is simply objective reasoning of FL's shortcomings.

 
Condemnation drilling (or ground sterilization drilling), a positive task out of the way, clears the way for plant infrastructure location.
 
However, is FL now reverting back to exploration work, the company's comfort zone, exploration not operations. 
Now drilling into the lower grade Lithium sections, relatively near surface.  However, in close proximity to the planned operational infrastructure which could be useful feed at the beginning of operation circuit optimization.

Time will tell if recent hires can alter the course of meaningful progress into operations. 
If all it costs FL investors is stock options, it could be worth a try. 

In fact, if the Corporate Dev guy can bring about an agreement with Volkswagen similar to the deal structure of General Motors & LAC, something that is meaningful to FL over a multi-year, Lithium supply duration including capital (capex) to get moving on Lithium operations, then go one step further and toss in a performance metric compensation package.
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