Why is Firefly (ASX: FFM) down more than 8%?
Gold and copper explorer/miner FireFly Metals (FFM) has been caught in the wrong place at the wrong time after last week completing a $190mn equity raise at $1.78.
- Gold and copper are coming under pressure today as rising global bond yields are weighing on the recently high-flying metals, and their respective stocks.
The specific problem for FFM is the capital raise which is now showing a paper loss and probably leading to some liquidation by the “weak longs”.
While MM likes both the gold and copper space into Christmas further short-term weakness wouldn’t surprise as Presidnt Trump struggles to contain the Iran situation, pushing oil prices and bond yields ever higher.
- We like the risk/reward for FFM around in the $1.50-60 area.
