Michael Smedley Fortune Minerals Ltd. FT-T COMMENT Jul 14, 2017

Is getting momentum from cyclical behaviour from others in the sector. It has been in a downtrend. It is a good idea to get out in the next rally.

Cobalt. He was told to wait for the very high quality nickel, as the battery of the future will be nickel, lithium, etc., which gave him a sense of cobalt receding a bit. They are also big in bismuth.

He met with management 7-8 years ago. The difficulty is that it’s been around since 1988 and revenues have always been a difficulty. They have no production. Expects there to be quite a bit of dilution. He doesn't invest in companies without revenues.

FT market cap is a highly-risky $22M, and shares are down 44% in the past year. It has $9.2M in debt which adds even more risk. We are generally not in the habit of suggesting 4-cent stocks. It did recently receive $714,500 in government funding but this will not go a long way. Insiders own 6%. It has no revenue, has never made money and has negative cash flow. It is 'collaborating' with Rio Tinto, but we would not expect a buyout here and would not endorse it.
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