Q: Pretty brutal trend since its IPO. Being a royalty corp. hasn't helped it much vs the miners it seems.
Do you think it is getting close to buyable?
Do you think it is getting close to buyable?
5i Research Answer:
LIRC is down 44% from its March $17 IPO. In a difficult market for small caps, investors are usually very cautious about buying 'broken' IPOs, especially going into year end. The lithium/battery sector has also been very volatile which is not helping. Minimal revenues are still expected ($8M this year, $23M in 2024) so investors need to bet on the 'future' here. The company has $13.5M cash. It has made some new royalty investments and recently tried (and failed) in a hostile takeover of tiny TNR Gold. With negative cash flow, we think investors have lots of time here to buy later and we would not be too interested today.