RE:RE:RE: First Phosphate and Lithium Australia Sign MOU First off I always say management is smart but SELL INTO STRENGTH.
Note from filings the company has very little money about half million which will not take long to eat into.
They have signed three MOU docs. They plan to build a plant with LIT who has even less money than them. A plant to supply or build with for Sun Chemicals. And ABF will need product by 2026. PHOS does not even have a Feasability study how is that even possible in any dream world. The company is signing all kinds of agreements although non binding that will require hundreds of millions of dollars. So how do they get it.
1. DILUTION. They will need to issue shares just to keep the lights on.
2. Borrow. Yes they have an application for 170 million but that is an apllication. I can get one of those off the internet.
3. Joint Venture. Best shot at success but again dilution on a huge scale and if this property was so valuable how did they get it for a few million. No one in the mining community thinks it is worth a billion.
So yes they can hype the stock. Yes they are smart but again buy a position and sell into strenght. Only hold profits when this thing gets diluted and diluted and diluted