Q: Hi 5 i guys. Nice start to 2026!! I have a small position in Frontier Lithium that I bought back in the Lithium heydays about 3 or 4 years ago. Since it is a very small position in our portfolio and it is in a TFSA, so the tax loss would be of no use, I just kept it so we would have a little toe hold in the lithium sector. The last few days FL share price has been on a rip to the upside but I can't see any reason why. In the past few years I have not noticed a strong correlation between FL's share price and the price of lithium, which I attribute to the fact that FL is still just a proposed project so the current price of lithium does not effect earnings, because there are no earnings. Is there something on your radar that might give us long suffering FL share holders an idea as to why the shares are up sharply the past few days? Would you use this rip to the upside to get out of FL or should I wait to see if it keeps its upward momentum? It seems like someone (person or institution) is trying to get a position in FL, but it is above my pay grade to figure out why they want in on FL. Our only other position in the lithium sector is an equally small position in E3 in Alberta (It least on that one I got a double and sold half my position is what is left is the house's money!!
5i Research Answer:
FL has hit a new high and is up 47% YTD. But we have no company news to report. In fact, there has not been a press release since November. We might have seen this as a small cap January bounce, but it did not exactly decline last year either, which is the typical reason behind a January bounce. There has been a bit of insider buying (insiders own 15%). Frontier Lithium is progressing its PAK Lithium Project in northern Ontario, targeting a final investment decision in late 2027 or early 2028 and first production by decade's end. Recent joint venture videos and updates highlight integrated mine-and-refinery plans, boosting investor confidence in execution timelines.