Jennifer's avatar
$6.1m follower assets
Frontier Lithium: Ontario’s top tier spodumene
Trevor Walker, Frontier Lithium’s President & CEO, suggested that investors may possibly see a significant upside adjustment to the resource size.

SeekingAlpha out with a piece this afternoon on Frontier Lithium, calling it a “good high probability speculative play.“

DYODD, if you have questions I will do my best to find you the answers - this one is a solid lithium performer, likely with much more to come.
image
Oliver's avatar
How does this company stack up against lithium Americas $LAC ?
$LAC make up a reasonable chunk of my portfolio so I’m always interested in other speculative lithium plays.
How far is frontier from production?
What is there permit status?
Do they own 100% of the mining rights?
What is the likelihood of legal challenges if/when permits are granted?
Are they looking for / have they got any other lithium sites outside of North America?
Jennifer's avatar
@odysseus Good morning Oliver,

I have never owned or looked at LAC closely, so I am afraid I wouldn't be able to offer a well-informed opinion. It's also somewhat of an apples to oranges comparison in that LAC.TO has a ~$3.9 billion MC on the Cdn exchange, vs FL.v's $660 million, LAC properties are in Nevada & Argentina vs Frontier in Ontario, and brine vs spodumene. I am a strong believer in diversification, and though a significant part of my portfolio is devoted to lithium, I was mildly concerned about ESG & the economics of brine deposits. In addition to $AN.V (Argentina brine, of which LAC is a significant shareholder), I added $PMET.CN (Quebec) and $FL.V (Ontario) for the spodumene as well as different jurisdiction.

As far as permitting and production:
'Frontier Lithium aims to complete final permitting, metallurgical test work and definitive feasibility in 2023 to start construct a mine, mill and downstream chemical plant to produce lithium chemicals in 2025.'

The Federal government and the government of Ontario have been incredibly supportive of mining related to battery metals, as it in turn will support the automotive manufacturing industry there. I have included several links below that you may find of interest, and that should provide reassurance as to the permitting process and fast-tracking of mine development. There's always the potential for some legal challenges, but I don't personally have strong concerns in that regard as Frontier has employed Bart Meekis:

"Meekis is a member of the Oji-Cree First Nation of northwestern Ontario and resides in Sandy Lake, Ontario. Mr. Meekis previously served 16 years on the Sandy Lake First Nation council, including 4 years as Deputy Chief and 6 years as Chief. On council and as Chief, Mr. Meekis worked to improve communications and public relations, stabilize finance, and strengthen human resources. As Chief he worked on building partnerships to improve community infrastructure and housing, and essential power and road initiatives in the region."

Their PAK project is 100% owned. Currently, I am not aware of any potential project acquisitions planned outside of North America. I don't believe Frontier has intentions to do so at this point, but I am sure you could speak to their IR dept if you wanted to ask further. Many of the details are available in their investor presentation.

I hope I was able to provide some helpful information. Cheers!




Oliver's avatar
@jennymanydots thank you for the breakdown. Absolutely adding this to the watch list while I do a deep dive into the company.

Author

Related