Maybe you fail to grasp the significance, Nowhat
... of a Prefeasibility Study.
A Prefeasibility Study and a Feasibility Study are, as you might expect, inherently linked. The key point to understand is that they represent important milestones for mining and exploration companies.
Here's some DD from Resource Investing News that you might want to review before fully forming your opinion:
What is a prefeasibility study?
Prefeasibility studies are an early stage analysis of a potential mining project. They are conducted by a small team and are designed to give company stakeholders the basic information they need to green light a project or choose between potential investments. Prefeasibility studies typically give an overview of a mining project’s logistics, capital requirements, key challenges and other information deemed important to the decision-making process.
When and why do companies undertake them?
Prefeasibility studies act as one of the first explorations of a potential investment, following a preliminary resource report and the creation of an orebody model. Based on the data procured by various assessments, a prefeasibility study may occur. Companies use these studies to collect information before investing millions of dollars into tasks like acquiring permits or research equipment.
What information do they include?
In addition to information relating to geological models and mine design, prefeasibility studies also take into account factors that may impact or interfere with the final project. That can involve community issues, geographic obstacles, permit challenges and more.
A comprehensive prefeasibility study should include detailed designs and descriptions for mine operation, as well as cost estimates, project risks, safety issues and other important information. There should also be multiple options included in the study for tackling different issues, as that will provide organizations with more ways to overcome potential challenges.
Clearly, and given the comprehensive nature of a PFS, I'm sure you'd agree that it's at least plausible that a milestone positive PFS, showing promise for LAC's claystone extraction process, could lead to: 1) a significant investment in LAC by one or more third parties; and 2)a concomitant significant rise in the PPS. To me, the most apt analogy is the rise in PPS of medical stocks when a new test result shows promise for an experimental/revolutionary drug to fight cancer or some other serious disease. The PPS frequently surges on such news, even though it is preliminary in nature and the patent(s) have yet to issue.
Of course, that's just my opinion, I could be wrong. And you may have another. If so, I'd be interested in seeing your DD/logic backing it. In any event, as Jet likes to say, "each to his own."
GLTA and regards to all, G8tr
