- FireFly Metals (FFM) is rapidly building a reputation as a highly effective way to gain exposure to the widely forecast increase in the copper price
- This is due to the spectacular drilling results and outlook for strong inventory growth its Green Bay copper-gold project in Canada
- FireFly’s enviable status as a rapidly growing copper company in a tier-one location was reflected in the recent emergence of leading global investor BlackRock as a substantial shareholder
- Now two hot-off-the-press analysts’ reports suggest the red metal explorer’s share price is about to get white hot
- These brokers have set big price targets ahead of an expected resource increase in the coming quarter
- FireFly now has multiple rigs turning at Green Bay, ensuring strong newsflow in the lead up to the new resource
- Following its recent highly successful $52m raising, the Company is fully-funded for its aggressive drilling campaign
- Firefly is led by Steve Parsons, founding MD of Bellevue Gold (BGL)
- FireFly is perfectly positioned to capitalise on investor demand for growing copper companies in tier-one locations
- Copper price is widely tipped to continue rising on back of the energy transition and lack of supply
The phrase hot copper normally conjures up images of online posts by day traders ramping and ridiculing junior ASX companies, their projects and most notably, their management.
But it is increasingly clear that when it comes to talk of hot copper, investors’ minds are now turning to the rapidly growing FireFly Metals.
The extent to which FireFly is fast becoming a hot copper stock was overwhelmingly evident this week when two broking houses released bullish reports on the company and its Canadian copper project.
The Green Bay project already hosts a JORC resource of 811,000 tonnes of copper-equivalent. But it’s the spectacular drilling results which are causing analysts and investors to get sweaty about the prospect of a significant resource increase in the coming quarter.
This ongoing flow of drilling results comes as investors scramble for exposure to the red metal amid widespread forecasts of rising prices on the back of the energy transition.
Analysts set bullish price targets
A hot-off-the-press report from Perth broker Argonaut values FireFly shares at a whopping $1.45 – more than 60 per cent above its current price of ~88c.
Analyst George Ross says recent drilling results have confirmed mineralisation extends down plunge.
“With a third rig scheduled to commence drilling in May, we expect resource growth and near-mine exploration activities to increase,” Ross says in his report.
“Green Bay shows promise for an upscaled mine with a +45,000tpa copper production profile.
“Resource expansion during the next 18- 24 months will be key to underpinning future studies.
“The most recently announced set of drilling results have confirmed potentially economic mineralisation down plunge from the current resource.”
Ross notes that historical hole R17-25B (102m at 1.7% Cu, 0.1g/t Au) extends known mineralisation at least ~350m down plunge from the termination of the existing resource.
“We see no reason why the deposit would continue further than this hole,” he says. “As it is progressed, FFM’s exploration drive will enable deeper potential extents of the deposit to be tested.”
Argonaut’s report followed hot on the heels of a similarly bullish note from fellow broker Shaw, which set a $1.10 price target.
Shaw’s report says “a host of outstanding intersections with high grades and large widths” put FireFly on track to report a “significant resource upgrade” in the September quarter.
“Two drill rigs are on site at Green Bay with a third due to commence in May,” Shaw said.
“Drilling will also take place from the underground exploration drive to allow for faster, cheaper and more accurate results.
“FireFly is well positioned to benefit from stronger copper prices given the company is highly leveraged to resource growth. The company remains a key pick in 2024.”
MD Steve Parsons on FireFly’s outlook:
In its recent quarterly report, FireFly stated that it is “on track to establish a significant copper resource in a tier-one location”, noting that its highly successful drilling program continues to extend the known mineralisation, paving the way for resource update.
Parsons said: “When we acquired Green Bay, we knew we had secured an exceptional opportunity to capitalise on the next copper bull market.
“The drilling results we generated in the March quarter clearly support this view, extending the known mineralisation well beyond the existing resource boundaries with high-grade assays and wide intersections.
“The results reinforced our confidence in the potential for immense resource growth. They also prompted us to undertake the $52m raising, ensuring we have the funds to rapidly expand the Resource.
“We are about to add a third rig with the aim of achieving rapid resource growth by extending the known mineralisation and testing the numerous targets we have already identified.
“The outlook for the copper market is unquestionably strong while major investors and commodities traders are scouring the globe for opportunities, particularly in tier-one locations such as Canada.
“Green Bay ticks all these boxes and hence we are determined to unlock the full opportunity in a fast and effective manner”.
