Today after a nice run to the upside, we are looking to lock in more profits on the FFX positions on the open.
The High Conviction portfolio currently has 15,000 shares in FFX. We will look to sell down 7,500 shares (50% of current position) at $0.90 or better to lock in profits.
We are also looking to lock in more profits before the Goulamina Lithium project is spun out into a separately listed company called Leo Lithium within the next month.
For those not familiar, sitting inside Firefinch are two separate commodity assets a producing gold mine called Morila and the Goulamina Lithium project. Firefinch shareholders on the record date to be determined will receive a pro-rate entitlement of Leo Lithium and be able to participate in an entitlement offer for additional shares in Leo Lithium.
Firefinch will continue as a listed company holding the gold asset, and the new company Leo Lithium will house the Lithium project. Separating the projects will allow investors to have direct exposure to the commodity of their choosing and create shareholder value over the long term.
In opening a position in this company, we were more interested in the profit potential of the Lithium business. So shortly after the record date has passed, we are likely to sell Firefinch shares and apply for additional shares in the Leo Lithium entitlement offer. Of course, any action will be determined on the price of Firefinch after the record date and entitlement offer price for Leo Lithium. So watch this space for information on the record dates as they become available.
TRADE ACTION
Sell 7,500 FFX shares at $0.90 or better on the open