Fortune Minerals Limited

14 Comments

1. Steve K on January 23, 2020 at 10:48 AM

   Hello, with the market being as it is and with the impending debt obligations that forthcoming, do you still think that FT has growth potential? Thanks

   • FRC Analysts on January 23, 2020 at 11:35 AM

     Hi Steve, thank you for the question. Fortune Minerals remain one of our top picks in the cobalt space; a sector we have a positive outlook on. The debentures on Fortune’s balance sheet is due in August 2022. We believe the uniqueness of NICO as one of the largest primary cobalt and gold deposits in North America, make Fortune a compelling story for both mining / technology institutional investors and private equity. A 2014 Feasibility Study, which was done at commodity prices pretty much in line with current prices, had returned an after-tax NPV at 7% of C$224 million. Fortune’s current market cap is only C$29 million. Therefore, we believe the probability of attracting a financing partner is higher in the next 12 – 18 months.

2. Steve K on April 16, 2020 at 8:27 AM

   Hello,

   Are you still bullish on this company? On their recent financial statements it looks like they need a private placement to survive.

   They are now down to a nickel. There isn’t a lot of positive outlook it seems… any input is greatly appreciated.

   • FRC Analysts on April 16, 2020 at 10:31 AM

     Hi Steve, thank you for the question. We maintain a positive outlook on cobalt and Fortune’s NICO project. We believe delays in obtaining project financing is why Fortune’s shares are currently depressed. That said, their balance sheet is reasonably healthy to survive the current environment. They had $2.1 million in working capital at the end of 2019. We estimate that their burn rate is approximately $125k per month, so they can technically survive till the end of Q1-2021 with no additional capital raise. Hope this helps.

3. Steve K on August 25, 2020 at 10:13 AM

   Hello,
   With the recent uptick in gold prices, do you believe that your valuation for FT is still accurate or do you believe the assumption is dated? Thanks or your input!

   • FRC Analysts on August 25, 2020 at 1:23 PM

     Hi Steve, appreciate your message and question. We intend to publish an update report on FT shortly to reflect our current commodity price forecasts. Please continue to monitor our website. Thank you.

4. Steve K on November 20, 2020 at 4:28 AM

   Hello, just checking in to see if an update on this company was published? Thanks!

   • FRC Analysts on November 20, 2020 at 10:58 AM

     Thanks Steve. We have decided to wait for more details on the company’s plans for 2021 prior to publishing an update. Please monitor our Analyst Ideas of the Week (https://www.researchfrc.com/ideas-of-the-week/), as we will mention Fortune Minerals if there are noteworthy developments.

5. Steve K on July 1, 2021 at 6:45 AM

   What are your thoughts on ft since their annual update?

   • FRC Analyst on July 2, 2021 at 9:27 AM

     Hi Steve, thank you for the question. We are expecting a number of catalysts for FT in the next six to 12 months. We will be publishing an update report in the coming weeks. Please continue to monitor our platform. Thank you.

6. researchFRC Drake r on March 7, 2022 at 11:21 PM

   With its new option to secure, and the spur road (hopefully) beginning this year now that the highway is completed; Where do we see ourselves financially? For what would be great news, we dont seem to have the movement described out in 2020 or 2021. What is still holding this back from major investment?

   • FRC Analysts on March 8, 2022 at 10:56 AM

     Hi researchFRC Drake, thank you for your question. We believe the next milestone for FT will be completion of purchase of the refinery site. Please check out our report in September 2021 for our views on project financing and catalysts. Thank you.
     https://www.researchfrc.com/fortune-minerals-limited-tsx-ft-otcqb-ftmdf-a-unique-combo-of-cobalt-and-gold/

7. Steve K on December 6, 2022 at 4:36 PM

   Hello- do you think fortune minerals will be acquired?

   Or do you anticipate them being able to secure financing? It seems to be a challenging time in the junior space- cobalt is well off its highs….still early days of the canadian innovation and growth fund…

   Curious to see your outlook for the next 6 months.

   Cheers

   • FRC Admin on December 7, 2022 at 9:09 AM

     “Hi Steve, thank you for the question. We continue to have a positive outlook on cobalt and FT. However, we believe there is potential for additional delays in securing a financing. As you rightly pointed out, junior resource companies have had a challenging year, and financings have become extremely challenging. We were pleased with FT’s most recent announcement. Please click on the link below for a note:

     https://www.researchfrc.com/we-are-cautious-on-equity-metal-prices-due-to-this/