FFX - Firefinch Limited

frugal.rock said:

Much closer to fruition now.
Nice looking chart l

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You can say that again for Frock sakes, might as well move to Tassie and talk to meself

GANFENG JV FORMALISED &
US$170 MILLION FUNDING PACKAGE TRIGGERED

 All conditions precedent for Ganfeng’s investment into the Goulamina Project have now
been met following transfer of the Goulamina Exploitation Licence

 US$130 million in cash to flow to the JV Company, with US$39 million in funding to be
released from escrow to the JV Company and a further US$91 million to be transferred by
Ganfeng in the coming days

 Ganfeng required to provide a further US$40 million in Ganfeng debt or source US$64 million in third party debt

 Firefinch will now proceed with the demerger of Goulamina into Leo Lithium Limited in
accordance with regulatory timeframe

FFX was heavily spruiked by Long Capital recently. Thought it an opportune time to sell into the new money at the new high.

peter2 said:

FFX was heavily spruiked by Long Capital recently. Thought it an opportune time to sell into the new money at the new high.

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that would seem to be the case...... and can't even move the Lithium play. Have to enjoy the chutzpah

Firefinch’s lithium spin-off Leo Lithium had its brokers rounding up bids for up to $44 million in the IPO’s shortfall auction on Thursday afternoon. The brokers were offering Leo Lithium shares at 70¢ a pop, and bids were due 4pm Thursday. Leo Lithium would house Firefinch’s Goulamina project in Western Africa’s Mali. It has been looking to raise $50 million to $100 million via the IPO.

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Initial plans were for an $80 million pro-rata offer (one Leo Lithium share for every 10.33 Firefinch shares), with the leftover stock going into a shortfall auction - both at 70¢ a share. Thursday afternoon’s $44 million shortfall auction indicates existing Firefinch investors only took up $36 million of the $80 million worth of shares that was offered to them.

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Just an update on the behaviour of FFX today for anyone who is wondering.

and this looks like a big hole to dig out of. Going to be bloody when it reopens. .... 20c to (?) 6c or even lower. A sorry state for earlier investors

Recapitalisation package agreed with key stakeholders including $90 million equity raise to fund Morila Stage 1 and 2 production plan and provide working capital

1.5 billion new fully paid ordinary shares at an offer price of A$0.06 per New Share:

• A$90 million equity raise to provide Firefinch with a strong balance sheet to continue the Morila production ramp up under the Company’s Stage 1 and Stage 2 production plan through to 2024
o Firefinch launches A$90 million two-tranche Placement. Tranche One of the Placement is set to raise approximately A$10.4 million and Tranche Two of the Placement, which is subject to shareholder approval, is set to raise A$79.6 million
• In addition to the equity raise, the Company’s current mining services contractor, MEIM Morila SARL, to convert approximately US$23.4 million of outstanding debt and future liabilities to equity, subject to shareholder approval
o Additional trade creditors to convert at least US$4.89 million of outstanding debt to equity, subject to shareholder approval
• Upon settlement of both tranches of the Placement, Firefinch will have a pro-forma 31 August 2022 cash balance of ≈A$126 million (before costs)
• Firefinch to launch a Share Purchase Plan offer to shareholders of up to A$10 million, subject to shareholder approval and subject to the discretion of the Board to accept oversubscriptions
• New leadership team with a proposed restructured board to leverage industry knowledge and expertise

Dona Ferentes said:

and this looks like a big hole to dig out of. Going to be bloody when it reopens. .... 20c to (?) 6c or even lower. A sorry state for earlier investors

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I'm one of them. The LLL rights issue will offset the hit a bit.

FFX has been a very naughty boy. We all know/should know the dangers involved when investing in the projects of the Perth geos/engineer/brokers boys' clubs. I might see how this opens up and have a crack at some short-term trades. If nothing else FFX still has its locked-up shares in Leo lithium providing some valuation to the company.

Right now, they have suppliers converting debt into equity and are still looking to raise 90 million to fund a gold mining operation which does not seem to be very profitable. Below is a snapshot of their recent presentation - 1.5g/t ore at a 9:1 strip ratio is not cheap, and the forecast of $1,475USD ASIC demonstrates that low grade/high strip cost. And can we trust the recovery? Last quarter it was 85% and the quarter before was 80%. Sure, they're getting different material but not exactly a lot of credibility left with these guys.

I could not tell if that 81 million for mine development is effectively 'capital' for future ounces or if it's supporting the mining of the next 18 months. So, who actually knows where the cash balances will be, but in my analysis of gold miners I often (95%+) find that the operating cashflow costs are equal to or slightly higher than AISC. Add in capital costs, investing costs and I can't imagine in 18 months that FFX is going to have more than $25-$50 million in the bank and may still have a gold mine which is not cashflow positive.

Also remember the government owns 20% of the mine.

Dona Ferentes said:

and this looks like a big hole to dig out of. Going to be bloody when it reopens. .... 20c to (?) 6c or even lower. A sorry state for earlier investors

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Starting to ask the question, is it going to reopen... been a looooong time.

frugal.rock said:

Starting to ask the question, is it going to reopen... been a looooong time.

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Wondering about the same. I got trapped on these and way into the red.
I did get some LLL shares out of them.

FFX delisted on 1 July 2024.