Highlights

• FireFly Metals said in its September 2026 quarterly report, released on 29 October 2026, that it held cash.

• FireFly has six underground rigs at the Ming Mine, four on infill drilling to convert resources and two.

• The company cautioned that the assessment is preliminary and that there is no certainty its assumptions will prove.

• The definitive feasibility study, a maiden Ore Reserve and the next Mineral Resource update are expected in the.

FireFly Metals (ASX:FFM) — said in its September 2026 quarterly report, released on 29 October 2026, that it held cash and cash equivalents of A$337.1m at quarter end, after completing an equity raising of about A$180m. The company's highlights cite roughly A$349.7m in cash and liquid investments. The figures are unaudited. FireFly's fully paid ordinary shares are listed on both the ASX and the TSX, and its focus is the Green Bay copper-gold project in Newfoundland and Labrador, Canada.

Funding and cash flows

The raising was priced at A$1.78 per share, with 101,090,117 shares issued. It comprised a A$150m ASX placement and about A$30m through a TSX bought deal. A share purchase plan raised a further A$4.975m through the issue of 2,794,621 shares. The company said the funds are earmarked for early works, underground development and drilling, regional exploration, the definitive feasibility study and working capital.

In the quarter, operating outflow was A$2.6m, investing outflow was A$20.6m and financing inflow was A$175.8m. The Appendix 5B estimates a funding runway of 15.5 quarters.

Drilling at Ming Mine

FireFly has six underground rigs at the Ming Mine, four on infill drilling to convert resources and two on step-out extension drilling, plus three further rigs on surface exploration. Cumulative underground diamond drilling since October 2023 totals 218,007 metres.

Resource and preliminary economics

The August 2026 Mineral Resource estimate comprises 60.2 million tonnes at 2.4 per cent copper equivalent in the Measured and Indicated categories and 23.5 million tonnes at 2.5 per cent copper equivalent in the Inferred category. The company also reported the results of a Preliminary Economic Assessment covering only the Ming Mine resource, and excluding Little Deer and regional targets.

The 1.8 million tonnes a year base case shows an after-tax net present value at a 7 per cent discount rate of A$2.2bn, an internal rate of return of 41 per cent, a mine life of about 32 years, payback of 1.9 years and initial capital of A$516m, net of refundable tax credits. The 4.6 million tonnes a year upscale case shows an after-tax net present value of A$3.0bn, an internal rate of return of 39 per cent, a mine life of about 22 years, payback of around 3.7 years and expansion capital of A$484m.

The company cautioned that the assessment is preliminary and that there is no certainty its assumptions will prove correct. It uses a copper price of US$5.00 a pound, whereas the report cites a spot price of US$6.60 a pound. A large share of the resource is Inferred, which carries lower confidence, and the upscale case requires a new haulage shaft. The economics also assume Canadian clean-technology manufacturing tax credits, and the company noted there is no assurance the full benefit of these or other incentives will be realised.

What the funding is for

The raising leaves FireFly with a substantial cash balance relative to its quarterly outflow. However, the full cost of building the mine is not covered by this cash, and the company said project financing discussions are continuing.

Milestones and risks

The definitive feasibility study, a maiden Ore Reserve and the next Mineral Resource update are expected in the first quarter of 2027. A maiden Mineral Resource for a near-mine historical volcanogenic massive sulphide target is also expected in that quarter, ahead of the study results. The company is targeting a final investment decision in mid-2027, and said construction permit applications, early works and project financing discussions are continuing.

Key risks identified in the report are the preliminary status of the economic assessment, the proportion of Inferred resource, the dependence of the economics on tax-credit eligibility and the capital requirement for the larger production case. Investors should note that no feasibility study, reserve or investment decision has yet been delivered.