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Does MM like lithium play Cygnus Metals?

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Does MM like lithium play Cygnus Metals?

Hi James, Do you know why CY5 has continually underperformed in comparison to other lithium stocks? Is it worth holding? Thanks for your opinion. Jacky

Answer

Hi Jacky,

Th Canadian Lithium explorer has been weak for a few reasons but the main focus of the market appears to be dilution of shareholder equity. The company has issued a number of options that will vest as they progress towards production which will dilute any current holders stake in the upside of the company.

Recent drilling results have been reasonable without being exceptional, likely another reason for the weakness in shares. For now, we prefer high quality producers (Pilbara, PLS), or those closer to production with some corporate appeal (Global Lithium, GL1).

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Cygnus Metals (CY5)
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