First Lithium Resources Inc. (CVE:MCI) (PINK:FLNTF) gained another 8.7% halfway into trading session today following the massive advance from Friday.
The stock ended the last week with a 21% premium, trading more than 6.58 million shares in a day, easily surpassing the 516 thousand average.
The move was influenced by news and can be assigned to the general volatility though, providing little predictability for further price action. On a technical note, the price did broke the trading channel. However, the action that follows doesn’t resemble a sustainable breakout, and the substantial drop in trading volume indicates that traders are leaving to look for better opportunities.
The stock trades right where it’s supposed to, following the vague fundamentals. First Lithium holds a P/B ration at healthy level of 2.6, which is rather common for exploration stage companies with no revenues. The business struggles to cover common expenses and the management doesn’t hold back to raise funds by selling stock.
The only worthwile new last month was on April 25, when the company disclosed they have completed a drill program at Mollie River. MCI have deepened an existing hole to access a wider zone of gold and copper mineralization. Results weren’t wery satisfying and the copmany currently plans no activity on the tested claims.
First Lithium is a junior exploration company with properties in Ontario, Manitoba, Alberta, Yukon and Nevada.
