Copper Project Expansion
FireFly Metals Raises A$190 Million to Accelerate Development of Green Bay Copper Project
Anonymous
Key Points
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Little Deer Mineral Resource update (as of Oct 29, 2024) shows 1.2 Mt contained metal at 2% CuEq, representing a 42% increase and reinforcing the Ming-Little Deer resource base underpinning Green Bay.
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CuEq calculation details used in the resource model include CuEq(%) = Cu(%) + (Au(g/t) x 0.97106) + (Ag(g/t) x 0.01360), with copper recoveries benchmarked at ~95% and precious-metal recoveries at ~85%.
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Base-case metrics indicate an after-tax NPV of about A$2.2 billion, IRR of 42%, a ~32-year mine life, around 50,000 CuEq per year at steady-state, and a payback of roughly 1.9 years after tax credits.
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The larger 4.6 Mtpa scenario features an after-tax NPV of about A$3.0 billion, IRR near 40%, ~22-year mine life, annual CuEq of up to ~106,000 t, with expansion capital of ~A$476 million largely funded from internal cash flow.
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FireFly is fundraising to accelerate development: an A$180 million equity raise (Australian institutional placement and Canadian bought deal) at A$1.78 per new share, plus up to A$10 million via a share purchase plan, aiming to lift pro-forma cash and liquid investments to about A$373 million.
FireFly Metals raised A$180 million to fast-track its Green Bay copper-gold mine in Canada, one of the world's largest undeveloped copper projects. The company released a preliminary economic assessment showing the base case generates A$2.2 billion in after-tax profit over a 32-year mine life, with payback in just 1.9 years Fool.com.au.
A larger development scenario yields A$3.0 billion in profit, producing up to 106,000 tonnes of copper-equivalent annually Mining Hub. The project sits in Newfoundland, Canada, with strong infrastructure and skilled workforce support already in place Quartr.
Two Paths to Copper Production
FireFly outlined two development options for Green Bay. The base case produces 1.8 million tonnes per year with an internal rate of return of 42% TipRanks. Operating costs stay low at around C1 cash levels, meaning the mine pays for itself fast.
The larger option processes 4.6 million tonnes yearly, generating 18% more profit with a 40% return rate. Expansion costs about A$476 million, mostly paid from cash the mine produces Mining Hub. Mine life shrinks to 22 years in this scenario, but annual copper output nearly doubles.
Resource Base Grows by Nearly Half
FireFly updated its mineral resource estimate in October 2024, discovering 1.2 million tonnes of contained copper-equivalent metal — a 42% jump from prior estimates Fool.com.au. The Little Deer deposit now underpins the broader Green Bay resource base. Copper recovery rates sit at 95%, while gold and silver recoveries reach 85% TipRanks.
Strong Finances to Speed Development
The A$180 million capital raise prices new shares at A$1.78 each, backed by Australian institutions and Canadian buyers Mining Hub. A further A$10 million share placement gives existing investors a chance to buy. Pro-forma cash reaches A$373 million, funding early works and feasibility studies.
FireFly plans a final investment decision by mid-2027, pending funding and technical milestones Quartr. Canadian tax credits for clean technology manufacturing reduce project risk. Environmental permits already allow early-stage work to begin TipRanks.
Tight Copper Market Fuels Demand
Global copper supply faces pressure as mines age and new deposits take years to develop. Green Bay targets steady-state production of 50,000 tonnes annually in the base case Fool.com.au. The larger development could supply 106,000 tonnes yearly, positioning FireFly as a top-tier producer.
The project's rapid payback and multi-decade production window make it attractive to miners facing a decade-long copper shortage. FireFly says Green Bay will become a leading undeveloped copper project as the market tightens Mining Hub.
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