It is always important to remain dillingent in reminding a CEO to share a piece of asset with Shareholders. One can never do this enough.
My opinion: market knows Magpie IPO is on its way, but Smith has yet to show evidence of feasibility. We have almost 1 billion tons of Fe, but is it feasible to separate it from Ti? Once he shows this evidence, the demand will increase the market cap. After years of waiting for Magpie to hit its stride, Smith's witholding this evidence feels like a deliberate attempt to withhold information that can increase demand for FNC. Yet, I am sure this is not his intent.
I am certain those accumulating FNC also are aware of the deals Smith is working on, that if made public, would demonstrate evidence of Magpie feasibility. But until revealed to public, FNC remains reflective of Fermont only. There is NO demand for Magpie.
In reading FNC's last news release, Smith speaks of two metallurgical processes. But describes only one. I might speculate the later is the evidence the market needs. That if revealed would take us above $1.00. I might also speculate the later isnt being revealed because it involves filling the Magpie IPO subscription privately or getting a major to sign on for the offtake - which is why it's hinted at and not revealed.
If either are true, as a shareholder I am glad there's a reason for long awaited Magpie data being withheld -other than the pleasure of torturing shareholders. It would be considerate to make public active plans.
Mainly, as a shareholder, I dislike a market cap that ignores a flagship asset. An ignored asset makes investors lack confidence in a company because either it a) lacks marketing skills, b) doesn't want to tell public Magpie isn't feasible, c) prefers to release news only after all deals are made -regardless if Marketcap and shareholders suffer. Either way an ignored asset erodes investor trust.
No matter what my speculations are, the fact remains Magpie is being ignored and that hurts my portfolio.
I hope all will be revealed this quarter and FNC will arrive at $2 or more.
-sg
