The Firefinch Ltd (ASX: FFX) share price has rocketed today after the company released a positive quarterly gold production report.
During late-morning trade, the mineral exploration company’ shares rose to a high of 25.5 cents. However, the Firefinch share price has since given back some of those gains, retreating to 22 cents, up 12.5% at the time of writing.
What’s driving the Firefinch share price up today?
For the December quarter, Firefinch reported that it had previous forecasts by producing 4,228 ounces of gold last month. The positive result was attributed to processing tailings of the previous metal from the Morila gold mine.
In total, 7,683 ounces of gold has been extracted and processed from the open gold pit since 11 November, 2020 – when Firefinch acquired an 80% interest in the Morila gold mine.
To further develop the main gold pit, the company has been evaluating new potential ore feeds, plant and infrastructure refurbishment, as well as costings. Currently, two reverse circulation drill rigs are executing infill drilling, which will expand coverage to exploit additional gold.
Looking ahead, Firefinch reaffirmed its production guidance of 10,000 to 15,000 ounces of gold for the first quarter of 2021.
The company revealed a healthy balance sheet with cash on hand standing at $33 million at the end of December.
What did management say?
Commenting on the performance, Firefinch executive chair Alistair Cowden said:
We are delighted with the gold production and overall progress at Morila. In just two months, the Firefinch team have safely achieved above forecast production. Significant progress has been made on mine plans, costs and timelines and we very much look forward to updating our shareholders further as plans are finalised.
At the same time, we are in a very fortunate position with our Goulamina lithium asset. Recent strong interest in lithium equities has improved the standing of the Goulamina Lithium Project, one of the world’s best undeveloped and uncommitted lithium assets.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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