Financially Strapped Maximus Resources Eyes Lithium Bandwagon

John Robertson

PortfolioDirect

This week’s Livewire Exploration Watch ((VIEW LINK) tagged Maximus Resources as “exciting” because of work at the Eagles Nest prospect in Western Australia. A geological reinterpretation at the historic Spargoville gold workings has raised the possibility of a high grade gold find near existing infrastructure. Meanwhile, on Monday, the company announced that a review of the lithium potential of its tenements is “nearing completion”. This, it contends, does not distract it from its “core focus”. The temptation to juice up a moribund investment market by jumping on an available bandwagon is understandable but one person’s bandwagon can easily become an uncomfortable distraction for a sub-$4 million value company. More projects mean enforced capital rationing and doubts among investors about priorities. They increase the number of possible disappointments. A company with cash of $336,000 at the end of December and forecast March quarter spending of $300,000 does not need more development options. Maximus needs to show it is capable of executing on potentially exciting prospects in a market that requires companies to get one thing right before shifting to the next target.


John Robertson
John Robertson
PortfolioDirect

John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...

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