Opinions
Dennis da Silva
Frontier Lithium
FL-X
BUY
Jul 06, 2021
A smallcap that's done well for him as lithium prices have jumped, fuelled by the boom in e-cars that will continue for the coming decade. Like Australia, all the Canadian projects have been hard rock. Most lithium comes from South America, which is low cost vs. hard cost which costs more in production. Australia leads hard rock production while Canadian is trying to generate more such business. Board members and the CEO have a background in mining and are well-connected in the industry. This is a high-beta way to own lithium.
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Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research
FL has seen some executive turnover, including the CFO quitting. But it also in May released its pre-feasibility study on the PAK project, outlining life-of-minee cash flow of $8B on an initial ~$500M capital cost and net present value of $2.6B. Drilling is ongoing. Insiders, owning 20%, have been small net buyers in the past six months. There has been chatter of government assistance with its project in terms of infrastructure and/or construction. Things are moving forward nicely here. '
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