FireFly Metals Must Now Offer More than Just Exploration Success
Dow Jones
Aug 04
0332 GMT - Promising drilling results from FireFly Metals' Green Bay copper-gold project seem to be having a diminishing impact on the company's share price, as investors move their focus from exploration to the potential development of a mine, say analysts at MA Moelis Australia. "Stocks can't trade on exploration excitement forever," they say. "When the market is wholly convinced there is a real project, eyeballs start to turn towards the detail around delivery." MA thinks there's a risk the market will be underwhelmed by a maiden study on the project, which is likely to be limited by an initial 1.8-million-metric-ton processing rate. It downgrades its rating on the stock to hold from buy and cuts its share-price target to A$1.90 a share from A$2.30. Shares are down 7.0% at A$1.73.
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