Q: Can you comment on the outlook for this stock given the deal with Mitsubishi announced today. Thanks
5i Research Answer:
The deal with Mitsubishi provides FL with immediate and near-term financing to aggressively advance the first fully integrated lithium mining and processing operation in Ontario, per the company. FL will contribute all assets related to the project in exchange for a 92.5% interest in the JV and will serve as the manager and project operator of the JV. The deal bodes very well for FL as if all goes according to plan the company will play a key role in the EV supply chain in North America. There are numerous milestones that of course need to be hit before this, but Mitsubishi's commitment adds speculative value and third-party confirmation to FL.