Frontier Lithium Inc V.FL

CG analyst “largely negative”

[qwerty22]

See any more?

In response to the release of the results of a Pre-Feasibility Study for the PAK Lithium Project, Canaccord Genuity’s Katie Lachapelle cut her Frontier Lithium Inc. (FL-X) target to $4, below the $4.08 average, from $4.50 with a “speculative buy” recommendation. “The PFS results were largely negative relative to our forecasts and the PEA, with both capital and operating costs up materially (but offset by higher pricing),” she said. “In our view, this was not surprising, given recent inflationary pressures we’ve seen across the industry (e.g., Thacker Pass, Kathleen Valley, etc.); and overall, we think the updated technical report outlines a more realistic operational and financial outcome for Frontier. “Furthermore, the project still presents robust operating margins (approximately 65 per cent) on our long-term price deck and Frontier continues to screen cheap vs. other North American developer peers (0.53 times NAV vs. peers at 0.62 times). An update on the road infrastructure will be a critical next update for the company, in our view.”

[qwerty22]

Maybe managements conservative approach to the numbers has bitten them in the proverbial. Seems like this analyst is looking at the bottom line and concluding from that alone.  

[qwerty22]

So the "negatives" she talks about are industry wide stuff (inflation etc) and yet she can have a price target on PMET of 16 bucks! Erm!!! Presumably they've got logic tied up in a cupboard somewhere.  

[FrankCowperwood]

She connects development costs to the current share price, of course at $16 dilution is low. But where the share price is going to be by the time of financing?