FireFly Metals Ltd

ASX:FFM

FireFly Metals Ltd

ASX:FFM
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$0.775 (+1.3%)
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#505
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Pinned straw:
Strawman
Added 4 years ago

Going from 0.7c to 17c in a year (a 24x return!) is amazing stuff.

Not my usual bag, but had a closer look out of interest.

The reason for the pop is that Auteco has struck gold -- literally. A tiny little minerals exporation company has grown to ~$274 million market valuation after announcing that their Pickle Crow project in Canada has discovered 830,000 ounce deposit.

At current gold price, that's ~$2 billion worth.

So perfectly sensible for shares to re-rate so significantly.

But the proposition now is very different to when shares were only a few cents. The reality is that to extract that gold they need to move around 2 million metric tonnes of dirt. This will take years and a LOT of capital investment. We don't know what the gold price will be when they are ready to sell.

To get a read on value you'd need to have a good idea of the cash cost of production and the production rate. As well as have a confident view on gold.

Also be prepared for more capital raisings and a lot of volatility.

Way too hard, and too high risk, for me. 
Bear77
7 months ago

18-Dec-2023: FireFly Metals (FFM.asx) is the new name for the company formerly known as AuTeco (former ticker code was AUT.asx). They've also just done a 1 for 15 share consolidation, so today's closing price of $0.565 is equal to 3.77 cents/share prior to that share consolidation. See here: Name Change to FireFly Metals Ltd - FireFly Metals Ltd (ASX:FFM) - Listcorp.

Their new website: https://fireflymetals.com.au/

I've added this as a comment on a stale (3 year old) straw from @Strawman about the AUT share price rising sharply three years ago on a very nice gold discovery. Well - they're still mining shareholders wallets, but there's no gold being produced by the company three years on, but they are still announcing bonanza grade discoveries:


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Looks COLD!! Source: Pages 5 & 6 of AuTeco's 2023 Annual Report to Shareholders.

See also: AuTeco's 2023 AGM Presentation, November 2023

That one leads on the cover page with:

HIGH GRADE COPPER & GOLD

  • Company led by former Bellevue Gold and Northern Star executives with a proven track record 
  • Targeting large scale rapid resource growth
  • World-class exploration upside
  • Exceptional infrastructure including underground mines, processing plant, port and hydro power
  • Tier one mining jurisdiction


There has been some interest in them recently, but they have NOT been a good "investment" (punt) for longer term holders...


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They had a great story 3 years ago. They still have a great story. It's not the same story, but it's a really good one. But they're still not making any money, except by raising more capital on a regular basis.

Disclosure: Not a holder.

[Beware of "story stocks", no matter how good the story is.]

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