FFM - FireFly Metals

[Sean K]

This seems to be moving with the copper and gold price now. The days of AUT well behind it.

Making plenty of higher highs and lows.

I have a suspicion they might be wondering what the hell they do with PC now that the copper thing is a bedrock of the company. They must be trying to sell it off because they're not drilling holes in it at the moment.

 

[Sean K]

Copper probably needs to consolidate a bit but I think some punters have woken up that we're running out of the stuff and there's hardly a new big mine coming on line and if so it's being held up by green and red tape due to sacred cacti or such. My sharman tells me copper could be six bucks by the end of the year. Woof!

Expecting drill results in May.

 

[Sean K]

These results were supposed to come out in May, messing with my monthly stock pick. grrrrrr

Anywho, good grades but the widths are not like some earlier drilling. Looks like both zones of copper/gold are going to keep going deep. Would be nice if they telescope out a bit.

 

[Miner]

These results were supposed to come out in May, messing with my monthly stock pick. grrrrrr

Anywho, good grades but the widths are not like some earlier drilling. Looks like both zones of copper/gold are going to keep going deep. Would be nice if they telescope out a bit.

Mate @Sean K When you deal with a fire fly, it does not behave like a predictable drone .

View attachment 175806

 

[Sean K]

Well, Mr Market thought the intersections were OK, but might be just moving on the buzz around copper. It's been a good 6 months.

 

[Sean K]

If copper keeps going FFM should continue to be supported. Cu not far off 5 year highs around $4.80. Strange that it's running up while China growth is still questionable. Maybe the Panama mine suspension and general understanding of the likely upcoming supply issues is helping.

Resistance for this remains around the 90-95c mark.

Fingers crossed the Phase 2 drilling down in the bottom right of this slide from today's updated presentation shows the copper gold zones continue at depth.

 

[Sean K]

Since buying the Green Bay copper project in Oct 23 this has doubled. Good, and perhaps fortunate, timing that copper has had a very good run. Previous owners must be wondering WTF. Time to sell the crappy gold project and focus on this. Maybe they should have put copper in the new name. 'Firefly', huh?

 

[Sean K]

FFM hit that resistance zone and has fallen back with copper. But, still generally on the way back up from that 3 year downward trajectory.

Some nice drill results out confirming the deposit continues at depth with the same grades and widths. Question is how far I guess, or does it stop or does it telescope out, or new zones found through exploration at depth or elsewhere on the license.

It's at least going another few hundred meters.

Two more rigs coming on site soon so should be some more regular results coming through once they're spinning.

 

[Sean K]

The Fly is really struggling around that resistance zone. Too much fire there perhaps.

I don't think being a Director of Collingwood is really going to help with building a copper mine, but hey, we need some C-Suits in the wardrobe.

And, I suppose she's probably a member of the Chairman's Lounge and can identify risk, so that's a positive. It also fixed FFM's quota issues.

 

[Sean K]

A couple of interesting things in the Quarterly.

1. Strategic Review of Pickle Crow is underway. I assume they want to sell their 70% share as the priority has clearly shifted to the copper mine. If they were going to cut it away and list PC and still own it then I assume they'd still be putting some holes into but they've just mothballed it. Maybe they'll get $5 an ounce for it.

2. First MRE upgrade for Green Bay is due in September. I don't know how much of an upgrade it can be as they've only put a few holes into. My only concern with this 'update' is that it's been done to JORC and the original MRE was based on Canadian rules. I've had some bad experiences with Canadian MREs been converted to JORC and find half the ounces or tonnes of material disappear into the ether. So, the 'update' might not be an upgrade at all and badly surprise us. I can't see how that's possible when they've extended the mineral envelope by a few hundred meters at depth, but stranger things happen. (Note the note at the bottom of the page).

 

[Sean K]

There's no real good reason for the past few days. The Fly has more than doubled and almost tripled since the bottom in Jul 23. The stock market is a weird, frustrating and wonderful thing.

Maybe it's just been a brilliant management strategy to dump PC as it was proving too hard and buy the ready made GB copper play.

90c is going to be tough.

 

[Sean K]

Looks like 90c is being tested. Nice move. Not sure why Blackrock own so much of this now. I suppose they've got so much cash they need to throw it at something.

This stock has been a complete accident for me. I bought it for the gold thing and it was crap and then they bought this copper thing and it's gone nuts. Complete fluke.

 

[Sean K]

Looks like they're subtly putting the MRE upgrade back to October. It's extended quite a bit down hole now but no idea how much they're going to add to the existing resource. Would be nice to see it over a million tonnes of copper.

 

[Sean K]

Should be lots of drill results coming out of this baby in the next little while up to the MRE update in Oct. Hopefully translating the Canadian standard into JORC doesn't lose any insitu value.

Currently 800Kt of copper so it could possibly get to 1Mt with the 500m step out.

It failed badly at that resistance level under a dollar identified above and as expected. Maybe some consolidation around the 50dma could occur if the market doesn't implode and copper/gold play the game.

The Chairman and the MD (see Youtube discussion) both stating again that they're in the process of selling Pickle Crow, or something else to create some value to shareholders. I anticipate they monitise it and just put the funds into drilling at Green Bay. Not sure what 2.8M oz at 7g/t inferred is worth. Maybe about what the MC of the company was prior to switching to this copper thing. It was sitting at 40c about that time so maybe $150-200M. Could be handy.

 

[finicky]

Just rembered why I stopped looking at this early when @Sean K mentioned it - Steve Parsons. If my blurry score card is right he has a record of handsomely (i.e even more than usual) rewarding himself with shareholder equity. Especially the one he was in before Bellevue. Great looking project though, awesome. Probably cutting my nose off to spite my face.

Not Held

 

[Sean K]

Just rembered why I stopped looking at this early when @Sean K mentioned it - Steve Parsons. If my blurry score card is right he has a record of handsomely (i.e even more than usual) rewarding himself with shareholder equity. Especially the one he was in before Bellevue. Great looking project though, awesome. Probably cutting my nose off to spite my face.

Not Held

Interesting. One of the reasons I initially looked at this was because of Parsons. I did well out of Gryphon many moons ago. Thought I'd back him with AUT until that turned to custard. So, he is redeeming himself at the moment.

(If you intended the nose reference associated with Parsons, well done)

 

[Sean K]

One of their recent reports mentioned that the down hole EM surveys they were experimenting with was pretty accurate in identifying known copper mineralisation. They're now using it to find new zones at depth and laterally to the current ore bodies. It makes these results quite significant if the previous EM work is consistent. Finding another shoot similar to what they have could be huge. But, it could be dirt too...

 

[Sean K]

Talk about going from boiled lollies to chocolates.

Market cap now crossed $500m after it was under $200m as AUT. The sooner they monetize that pickled turkey project the better.

 

[Sean K]

Opportunistic CR on the back of recent price gains. Strategically a good idea, but I just hate these companies who come out with a statement one week saying 'well funded' for XX and then a week later put their hat out.

Ann on 16 Sep:

"• FireFly remains well-funded for its growth strategy with A$38.1M in cash at 30 June 2024"

8 days later:

 

[Sean K]

Expect a bump in salaries to management, bonuses and directors fees.