The Firefinch Ltd (ASX: FFX) share price has started the week in a positive fashion.
At one stage today, the Mali-based gold and lithium explorer’s shares were up 5% to 73 cents.
The Firefinch share price has since pulled back but remain up 1% at the time of writing.
Why is the Firefinch share price rising today?
Investors were bidding the Firefinch share price higher today after the company received some positive news.
According to an announcement out of S&P Dow Jones Indices, it has added Firefinch to the All Ordinaries index at the next quarterly rebalance on 22 March.
This can be a boost to a company’s shares as some fund manager have strict investment mandates that will only allow them to buy shares from certain indices such as the All Ordinaries.
S&P Dow Jones Indices appears to believe Firefinch shares have earned the right to join the index after the company’s market capitalisation surpassed $800 million. This follows a whopping 250% rise by the Firefinch share price over the last 12 months.
Investors have been bidding its shares higher over this time thanks to promising drilling results from its 80% owned Morila Gold Mine and 100% owned Goulamina Lithium Project.
The latter is one of the world’s largest undeveloped high quality spodumene deposits. Though, this operation may not be part of Firefinch for too much longer. Management is currently in the process of demerging Goulamina into a new ASX listed entity, Leo Lithium.
The post Is this boosting the Firefinch (ASX:FFX) share price higher today? appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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