Foremost Lithium (NASDAQ: FMST) is one of those very early stage mining companies that sometimes do become interesting. But we do tend to need to see actual results of something before they do. There’s a lot of Earth out there and very little of it is actually economic to dig up to produce anything. So, while having mining claims around the place might be nice that doesn’t stack up to value. We need to hear that there are mining claims with something worth mining in them before we get excited.
We’ve talked before of Foremost Lithium: “Foremost Lithium (OTCQB: FRRSF) stock should be up 5,000% at the open today. FRRSF stock actually fell 5% on the announcement though. For what happened was not the announcement of some massive lithium find, it was instead a purely nominal price change that took effect over this last very slow weekend. Monday was a half day for the US markets, yesterday they were closed. The greater proof we might want to take from this is that while, clearly, lithium is a zooming and booming market not everyone is actually profiting from that zoom and boom.” What had actually happened was: “That last doesn't apply to Foremost Lithium of course as it's OTCQB already. But the cultural influence is still there, must be. For they've just done that usual solution for a penny stock price, the reverse stock split. In FRRSF's case it was 1 for 50. One new share in return for every 50 of the old - the stock price then mechanically moves up by that 50x, or 5,000%.”
Foremost Lithium stock price from Google Finance
That stock consolidation was a precursor to their arriving on NASDAQ: “Foremost Lithium [FAT-CSE, FRRSF-OTCQB, FORO-FSE, A3DCC8-WKN] has announced the pricing of a US$4.0 million offering that will be used to fund exploration on projects in Manitoba and Quebec. The company also said its common shares and common warrants were expected to begin trading on the Nasdaq Capital Market today (August 22, 2023), under the symbols FMST and FMSTW, respectively.”
OK, so they’ve raised money and are spending it on exploring more of the tenements they’ve rights over. Perfectly respectable thing for a mining company to do. It’s just that we’ve very little information - none is closer - about any finds. So, the stock price is bouncing around on changes in sentiment, nothing else. Trade in the stock is pretty thin - 20k shares so far today by one reading. That means it doesn;t take much change in hte balance of trade to drive the price tens of % in a day. Which is, we think, what’;s happening. There’s no clear direction to the trades,so we assume there’s no clear direction to sentiment.
