This follows a new market announcement from the gold miner and lithium developer during midday trade.

Currently, Firefinch shares remain frozen at 20 cents apiece.

Firefinch provides update on placement

According to the company's update, Firefinch advised it has decided not to complete a proposed $90 million placement.

A broader recapitalisation package was announced last week in which the company was seeking to acquire funds from relevant stakeholders.

Firefinch wanted to fund the Morila Stage 1 and 2 production plan as well as provide working capital through to 2024.

However, taking into account the recent downward movements in the gold price and unfavourable US: AUD currency movements, the company has put its plans on ice.

As a result, Firefinch and the joint lead managers are now considering alternative funding options.

This includes undertaking further assessment of its funding requirements to successfully execute its medium-term production plan.

In addition to the placement, there was going to be a $10 million non-underwritten share purchase plan (SPP).

The price was to be listed at the same offer as the placement at six cents apiece.

Although, it doesn't look like this will be going ahead anytime soon as the placement has been put aside.

Firefinch share price review

After tracking higher from the start of 2021 until June this year, Firefinch shares were up almost 500%.

But in late May/early June, the company's shares saw their value wiped off the ASX with the share hitting 20 cents apiece.

Based on today's price, Firefinch has a market capitalisation of approximately $236.25 million with 1.18 billion shares outstanding.

The post Firefinch share price remains suspended following cancelled cap raise appeared first on The Motley Fool Australia.

However, a long-awaited return to trade could now be in sight following the release of an announcement this morning.

What's going on with the Firefinch share price?

Just days after spinning off its lithium operations as a separate listing, Leo Lithium Ltd (ASX: LLL), in June, Firefinch suspended its shares, announced the sudden exit of its managing director, and released a shocking operational update.

In respect to the latter, gold production at the Morila Gold Project fell well short of expectations during the June quarter due largely to poor equipment availability. This meant its production ramp up was behind schedule and its calendar year guidance was withdrawn.

In addition, the company revealed that it experienced significant cost pressures in the last quarter. This included material increases in diesel prices, the cost of explosives, and other consumables.

This left Firefinch in an incredibly precarious financial position, which brings us to today.

What's the latest?

This morning Firefinch announced a recapitalisation package. According to the release, the company will raise $90 million via a two-tranche placement.

The first tranche will raise approximately $10.4 million, whereas the second tranche, which is subject to shareholder approval, is set to raise $79.6 million.

However, the bad news for existing shareholders is that this will dilute their holdings materially. These funds will be raised at a massive 70% discount of 6 cents per new share.

In addition, the company's current mining services contractor, MEIM Morila, has agreed to convert approximately US$23.4 million of outstanding debt and future liabilities into equity. Once again, this is subject to shareholder approval.

Additional trade creditors have followed suit and agreed to convert at least US$4.89 million of outstanding debt to equity.

Management notes that upon settlement of both tranches of the placement, Firefinch will have a pro-forma 31 August 2022 cash balance of $126 million before costs.

It may even have a touch more. That's because Firefinch plans to launch a share purchase plan for retail shareholders of up to $10 million.

Management commentary

Firefinch's non-executive chairman, Brett Fraser, commented:

The agreement of the recapitalisation package, together with the alignment of key stakeholders, represents a significant milestone and provides a strong balance sheet to enable the Company to continue the Morila production ramp up under the Company's Stage 1 and Stage 2 production plan through to 2024.

Under Scott Lowe's new leadership, the Company plans to complete its review of the Morila life of mine plan, to release an update to the Company's ore reserve estimates based on the August update to the Morila Deposit's Mineral Resources and to continue to implement its revised mining, capital expenditure and operational plans to ensure that Morila's operations are more cost-effective and efficient. We appreciate the strong support that each of MEIM, Morila's other service providers and the Company's new and existing institutional shareholders have given the Company in order to implement the recapitalisation strategy.

The Firefinch share price is expected to return to trade "shortly after announcement of the Placement results and when Firefinch lodges its financial statements for the half year ending 30 June 2022."

The post What's happening with the Firefinch share price? appeared first on The Motley Fool Australia.

The Firefinch share price last traded at 20 cents before being placed on ice in late June.

Let's take a look at what the gold miner announced to the market today.

New managing director

Firefinch has appointed Scott Lowe as managing director. He will take up the role on 17 October. Lowe worked at BHP Group Ltd (ASX: BHP) for more than 20 years, including serving on the company's executive.

Recently, he has worked as the chief executive officer at ArcelorMittal's West African mining business in Liberia.

Firefinch has an 80% interest in the Morila gold mine, located in Mali, West Africa. Firefinch said Lowe has worked in a number of African jurisdictions during his career, delivering "outstanding results in challenging environments".

Commenting on Lowe's appointment, Firefinch chairman Brett Fraser said:

Scott's strong operational capability coupled with African experience places Morila and Firefinch into safe, sensible hands to guide the growth and stability at the Project and for Firefinch.

I am truly looking forward to Scott taking the helm at Firefinch as the Company continues its ramp-up at Morila to become an ASX listed Gold producer.

Firefinch remains in a trading halt while it finalises a funding proposal. This is expected to be completed by the end of October.

Share price snapshot

The Firefinch share price has lost 69% in the past year. In the year to date, Firefinch shares have fallen nearly 77%.

For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has shed 7% year to date.

Firefinch has a market capitalisation of about $236 million based on the current share price.

The post Firefinch share price remains on ice following key ex-BHP hire appeared first on The Motley Fool Australia.

Firefinch today released a third letter to the ASX responding to its latest query.

Let's take a look at what's been happening with this ASX gold mining share.

What's happening with Firefinch shares?

So, the drama with Firefinch of late all began on 27 June when the company requested a trading halt.

The following day, the miner announced that two recently appointed board members had resigned.

On 29 June, Firefinch asked the ASX to suspend its shares from quotation. The reason the ASX gave was "pending the release of an announcement regarding an update to operational performance and production guidance at the Morila Gold Project".

The same day, Firefinch announced that "by mutual agreement" the managing director had resigned.

Firefinch said it would pay the outgoing Dr Michael Anderson $450,000 in contractual entitlements. Anderson was with the company for 14 months.

Firefinch appointed Andrew Taplin as acting CEO and Dr Alistair Cowden as executive chair. Taplin was on a salary of $417,006 per annum (including superannuation) plus incentives before taking on the extra role. Now he's going to get an extra $10,000 per month.

What's the latest on the Morila Gold Project?

On 4 July, Firefinch released the update on the Morila Gold Project. It revealed that gold production during the June quarter was well down on guidance due to poor equipment availability and delivery delays on additional equipment because of sanctions imposed on Mali restricting the movement of goods.

The production ramp-up is now behind schedule, so Firefinch had to withdraw its calendar year guidance. Plus, the company stated it was facing rising costs for inputs like diesel and explosives.

The company told the ASX it had a plan to deal with this, including a potential capital raising. But it said it needed more time and asked for an extension of its voluntary suspension until the end of July.

The next day, Firefinch announced it had sold a portion of its shares in Leo Lithium Ltd (ASX: LLL). This delivered a cash injection of $12.9 million to improve its working capital position.

On 11 July, Firefinch announced the resignation of Cowden with Brett Fraser as his replacement.

The ASX asks questions as Firefinch shares stay frozen

The ASX has asked Firefinch a bunch of questions. Firefinch issued responses on 12 July and 21 July.

On 26 July, Firefinch asked for another extension to its voluntary suspension. It said its discussions with third parties over funding were "not yet complete". The miner asked for more time to finalise the proposed funding "which is anticipated to occur by the end of August 2022".

In a third letter to the ASX released to the market today, Firefinch answered questions about when it took delivery of certain equipment.

It also explained the timing of its realisation that sanctions were having a material impact on production at the Morila Gold Project.

In the meantime…

On Monday, Firefinch released its June quarter cash flow and activities report. This revealed a few new details about progress at Morila.

The company said "mining equipment is now arriving at site which will alleviate operational pressures". Firefinch also said it had implemented cost-saving measures and "enhanced" financial controls.

The company said it expected to provide an upgrade to the Morila resource and reserve estimate in the September quarter. It said this would "feed into a new mine plan, production and cost outlook and forward capital requirements".

Firefinch reported that the Mali Government had "granted a three-year extension to the Morila Convention demonstrating its endorsement of the ramp-up and revival of Morila".

As of 30 June, Firefinch had cash and equivalents of $40.8 million available, including gold in transit.

Firefinch shares snapshot

Firefinch shares have fallen by 64% in the year to date. They were trading for 20 cents apiece when the company asked the ASX for the trading halt.

Firefinch shares hit their 52-week low of 19 cents on 24 June.

The post When will Firefinch shares resume trading? appeared first on The Motley Fool Australia.

At the time of writing, the gold miner and lithium developer's shares are frozen at 20 cents apiece.

Firefinch receives cash injection

It seems Firefinch is facing investor concerns over an impending share dilution.

In a statement today, Firefinch advised it has sold 28.6 million shares in lithium peer Leo Lithium Ltd (ASX: LLL).

The transaction took place after market close yesterday at a sale price of 45.5 cents per Leo Lithium share.

Following the sale, Firefinch is expecting to receive net proceeds of around $12.9 million.

Management previously noted that the financing measures will help its current working capital position.

Firefinch holds a remaining 210.9 million shares in Leo Lithium which are subject to escrow until 23 June 2024.

This means that the company is not permitted to deal with or sell the escrowed shares, except in limited circumstances. The latter could be exempted in the event of a takeover or scheme of arrangement.

Furthermore, the escrowed shares represent about 17.61% of Leo Lithium's issued capital.

At 30 June 2022, Firefinch had approximately $35.8 million in cash and US$3.6 million in shipped gold bullion with funds receivable mid-July. This excludes the current shareholding in Leo Lithium and the sale that was executed yesterday.

About the Firefinch share price

A period of unfavourable trading conditions has led the Firefinch share price to sink almost 50% in the past 12 months.

Notably, its shares are down more than 76% year to date.

The company's shares touched a 52-week low of 19 cents on 24 June before going into a trading halt.

Firefinch presides a market capitalisation of around $236 million with approximately 1.18 billion shares on hand.

The post What's happening with Firefinch shares following a $13 million lithium sale? appeared first on The Motley Fool Australia.

This morning the struggling gold miner requested that its suspension continue until the end of July.

What's going on with the Firefinch share price?

The Firefinch share price was halted and then suspended originally while it prepared to release an update on the operational performance and production guidance of the Morila Gold Project in Mali.

However, with that now released, the company has requested that its suspension continue while it seeks to finalise funding.

Management notes that this funding is being designed to place the company in a more robust and sustainable working capital position. It will also support the capital investment required to take the operations to a long term sustainable and profitable operation of scale.

Operational update

In respect to its operational update, things have not been going well for the company and its Morila Gold Project. The release reveals that gold production during the June quarter was estimated to be 13,300 ounces. This compares to guidance of 17,000 ounces to 20,000 ounces.

Management advised that this has been driven largely by poor equipment availability, which has been exacerbated by the delayed delivery of additional mining equipment. This delay is a result of sanctions imposed on the State of Mali restricting the movement of goods.

Unfortunately, this also means that its production ramp up is behind schedule and its calendar year guidance has been withdrawn.

Costs rising

But it gets worse. Firefinch has experienced significant cost pressures in the last quarter. This has included material increases in diesel prices, the cost of explosives, and other consumables

Management is hoping to offset this by creating a new mine plan to target 8,000 to 9,000 ounces of gold production per month in the short term. The company is also cutting costs by reducing its board and putting capital projects on hold. Combined, this is expected to move the operation to positive operating cashflow.

But in order to achieve its goals, it expects to require funding via a capital raising. Firefinch is currently in the process of determining how much it will require and the structure of this capital raising.

Management commentary

Firefinch's executive chairman, Dr Alistair Cowden, remains positive on the company's longer term outlook. He said:

A confluence of events, including cost inflation, ECOWAS sanctions and contractor performance has resulted in underperformance at Morila. The Board has acted decisively to address this with management changes, cost cutting, a pivot in the mining strategy and the acceleration of a new mine plan to inform the way ahead.

I also want to make it clear that the orebody has not underperformed, rather production has not ramped up as fast and as cost effectively as planned. Morila is a world-class gold deposit with extensive operational infrastructure and which has produced over 7.5 million ounces of gold and has a current resource of 2.5 million ounces. This asset, together with our stake in Leo Lithium, provides a solid underpinning to the Company.

The post What's going on with the Firefinch share price? appeared first on The Motley Fool Australia.

This follows the completion of the lithium developer's demerger from Firefinch Ltd (ASX: FFX).

The Leo Lithium share price was down as low as 51.5 cents but is currently fetching 57.7 cents.

Is this a good start for the Leo Lithium share price?

The Leo Lithium share price appears to have had a disastrous start to life as a standalone listing.

The demerger was more complicated than others we have seen recently such as BHP Group Ltd (ASX: BHP) and Tabcorp Holdings Limited (ASX: TAH).

That's because as well as Firefinch shareholders being distributed 1 Leo Lithium share for every 1.4 Firefinch shares they own, the company also issued 142,917,008 shares at 70 cents each to raise $100 million.

So, based on the latter, the Leo Lithium share price was trading as much as 26% lower at one stage this morning.

What is Leo Lithium?

Leo Lithium has a 50% ownership in one of the world's largest undeveloped high quality spodumene deposits – the Goulamina Lithium Project.

This project, which is co-owned with Chinese giant Ganfeng Lithium, is expected to produce 726,000 tonnes of annual spodumene concentrate at an average cash cost of US$312 per tonne once at full capacity.

Initial product is expected to commence during the first half of 2024, with Ganfeng and Leo Lithium aiming for stage one production of 506,000 tonnes of spodumene concentrate per year.

Based on the current Leo Lithium share price and its approximate 1.2 billion shares outstanding, the company has a market capitalisation of $680 million.

Management commentary

Leo Lithium CEO, Simon Hay, was pleased with the demerger. The former Galaxy Resources CEO said:

It is a very exciting day for Leo Lithium as we commence trading on the ASX as our own listed entity following the demerger from Firefinch. I would like to personally welcome all shareholders to the register – thank you for your support. I would also like to acknowledge the exceptional work and support from our Board, advisors, Firefinch and Ganfeng to achieve this demerger and IPO. We have a highly dedicated and experienced team who are determined to deliver real value for shareholders, as well as our employees and the community in which we operate.

We have an exciting journey ahead as we work to realise the full potential of Goulamina and bring the project into production, alongside our JV partner Ganfeng. We have wasted no time in getting started with development already underway including the 2022 drilling program, procurement of long lead items and commencement of roadworks. Socialisation with local communities is also well advanced. I look forward to keeping shareholders updated of our progress as we fast track Goulamina into production.

The post Leo Lithium share price fails to roar and sinks 26% following demerger appeared first on The Motley Fool Australia.

Leo Lithium is home to Firefinch's lithium operations, which have been spun out into a separate listing.

When are Leo Lithium shares hitting the ASX boards?

It won't be long until Leo Lithium shares are trading alongside fellow lithium developers Core Lithium Ltd (ASX: CXO) and Liontown Resources Limited (ASX: LTR).

Last week, eligible Firefinch shareholders were distributed 1 Leo Lithium share for every 1.4 Firefinch shares they own.

These shares are scheduled to commence trade on the Australian share market on the morning of Thursday 23 June.

What is Leo Lithium?

Leo Lithium has a 50% ownership in the Goulamina Lithium Project in Mali alongside Chinese giant, Ganfeng Lithium.

The Goulamina Lithium Project is one of the world's largest undeveloped high quality spodumene deposits. Management notes that it has a long life, large scale and low-cost open pit project. Once operating at full capacity, it is expected to produce 726,000 tonnes of annual spodumene concentrate at an average cash cost of US$312 per tonne.

Though, it will take a little bit of time to reach full capacity. Ganfeng and Leo Lithium are initially aiming for stage one production of 506,000 tonnes of spodumene concentrate per annum. This is scheduled to commence during the first half of 2024.

The good news for shareholders is that it isn't likely that they will be expected to tip in any extra funds to get the party started. Ganfeng has contributed US$130 million in equity funding to the joint venture and will either source up to US$64 million in external debt or provide US$40 million of debt itself to fund the development of stage one production.

Another positive is that the company has an experienced leadership team. This is being led by former Galaxy Resources CEO, Simon Hay.

Hay was CEO of Galaxy until it merged with Orocobre to form Allkem Ltd (ASX: AKE).

He, along with Firefinch shareholders, will no doubt be watching on closely when Leo Lithium shares start trading on Thursday.

The post Leo Lithium shares hit the ASX this week. Here's what you need to know appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

BrainChip Holdings Ltd (ASX: BRN)

The BrainChip share price is down 5% to 95 cents. This is despite there being no news out of the artificial intelligence technology company. However, with a market capitalisation approaching almost $2 billion and next to no revenue being generated, investors may have concerns over its valuation.

Firefinch Ltd (ASX: FFX)

The Firefinch share price is down 11% to 29 cents. Investors appear to be struggling to value Firefinch without its lithium operations. Those operations are currently being spun off as a separate listing – Leo Lithium. In other news, there was disappointment in West Africa over Mali's military junta government's decision to extend the transition back to civilian rule by 24 months. Firefinch's operations are in Mali.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price has continued its slide and is down 4% to $12.62. Investors have been selling this fund manager's shares this week following another disappointing monthly update which revealed a sizeable decline in funds under management. In addition, the company was dumped from the ASX 100 index.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is down 6% to $22.04. Investors have been selling the banks today due to concerns over the Reserve Bank's aggressive rate hikes. There are fears that this could create challenges for the banking sector. This includes headwinds from more expensive wholesale funding, a weaker housing and mortgage market, and a greater risk of recession.

The post Why BrainChip, Firefinch, Magellan, and Westpac shares are dropping appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Ansell Limited (ASX: ANN)

The Ansell share price is down over 3% to $26.02. This appears to have been driven by a broker note out of Credit Suisse this morning. According to the note, the broker has downgraded this health and safety products company's shares to an underperform rating with a $24.00 price target. The broker believes input costs could weigh on Ansell's margins.

Domino's Pizza Enterprises Ltd (ASX: DMP)

The Domino's share price is down 3% to $66.90. Investors may be nervous ahead of the pizza chain operator's investor update on Monday. This update is focused on its Asian operations but could include a trading update for the whole company.

Firefinch Ltd (ASX: FFX)

The Firefinch share price is down a massive 63% to 35.2 cents. This has been driven by the gold and lithium explorer's shares going ex-dividend this morning for its in-specie dividend. This dividend relates to the demerger of the company's lithium operations. Eligible shareholders will be receiving 1 Leo Lithium share for every 1.4 Firefinch shares they own.

Healius Ltd (ASX: HLS)

The Healius share price is down 8.5% to $3.81. Investors have been selling this healthcare company's shares following the release of a trading update. That update revealed that trading conditions have been tough in the second half. As a result, during the first five months of the half, Healius has generated just under $100 million of EBIT. This compares to first half EBIT of $376 million.

The post Why Ansell, Domino's, Firefinch, and Healius shares are dropping appeared first on The Motley Fool Australia.

Ahead of its listing later this month, let's take a look at Australia's latest ASX lithium share.

What is Leo Lithium?

Leo Lithium will be home to Firefinch's demerged lithium operation. This comprises a 50% ownership in the Goulamina Lithium Project in Mali. Chinese giant, Ganfeng Lithium, owns the balance.

The company highlights that the Goulamina Lithium Project in Mali is one of the world's largest undeveloped high quality spodumene deposits.

Its recent definitive feasibility study update confirmed Goulamina as a long life, large scale and low-cost open pit project which is expected to produce 726,000 tonnes of annual spodumene concentrate at an average cash cost of US$312 per tonne.

In partnership with Ganfeng, Leo Lithium has commenced initial development activities. If all goes to plan, stage one production of 506,000 tonnes per annum is anticipated to commence during the first half of 2024.

Pleasingly, Ganfeng has contributed US$130 million in equity funding to the joint venture and will either source up to US$64 million in external debt or provide US$40 million of debt itself to fund the development of stage one.

Leading the charge will be Simon Hay. He was previously the CEO of Galaxy Resources prior to its merger with Orocobre, which later became Allkem Ltd (ASX: AKE).

When are Leo Lithium shares trading?

There's still a little time to wait before Leo Lithium shares commence trade on the ASX boards.

According to its most recent timetable, management expects them to start trading on 23 June 2022.

Shareholders will no doubt be hoping the recent volatility in the lithium industry will have calmed down by then.

The post When will Leo Lithium shares be roaring on the ASX boards? appeared first on The Motley Fool Australia.

In early trade, the gold and lithium explorer's shares were down as much as 66% to a 52-week low of 32 cents.

The Firefinch share price has since rebounded a touch but remains down 58% at 40 cents.

Why is the Firefinch share price crashing?

The good news for shareholders is that the sell down of the Firefinch share price today isn't because something bad has happened.

Today's decline is due to the company following in the footsteps of BHP Group Ltd (ASX: BHP) by undertaking a demerger.

This morning, the company's shares traded ex-dividend for the in-specie dividend relating to this demerger.

On this occasion, that in-specie dividend relates to shares in the soon-to-be-listed Leo Lithium (ASX: LLL). Eligible Firefinch shareholders will be receiving 1 Leo Lithium share for every 1.4 Firefinch shares they own.

What is Leo Lithium?

Leo Lithium is the owner of 50% of the Goulamina Lithium Project in Mali. This is one of the world's largest undeveloped high quality spodumene deposits.

In partnership with Chinese giant, Ganfeng, Leo Lithium has commenced initial development activities to bring the Goulamina Lithium Project into production.

Ganfeng has contributed US$130 million in equity funding to the joint venture and will either procure up to US$64 million in external debt, or provide US$40 million of debt itself to fund development of Stage 1 of the project.

Leo Lithium is being led by Simon Hay, who was previously the CEO of Galaxy Resources prior to its merger with Orocobre, which became Allkem Ltd (ASX: AKE).

Leo Lithium shares are scheduled to commence trade later this month on 23 June 2022.

The post Why is the Firefinch share price crashing 66% today? appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are pushing higher:

BlueScope Steel Limited (ASX: BSL)

The BlueScope share price is up 1.5% to $18.16. Investors have been buying the steel producer's shares after it upgraded its earnings guidance. Thanks to strong demand, BlueScope has lifted its underlying EBIT guidance for the second half of FY 2022 to between $1.375 billion to $1.475 billion. This compares to its prior guidance of $1.2 billion to $1.35 billion.

Firefinch Ltd (ASX: FFX)

The Firefinch share price is up 5.5% to 96 cents. This morning the gold and lithium explorer released a positive update on the Morila Gold Mine in Mali. That update reveals that the Government of Mali has agreed to extend the establishment convention for the Morila Gold Mine for three years until 16 May 2025. This allows for the ramp-up of activities and gold production at Morila.

Monash IVF Group Ltd (ASX: MVF)

The Monash IVF share price is up 5% to $1.11. The catalyst for this was news that the fertility treatment company has signed an agreement to acquire PIVET Medical Centre. It is a provider of fertility services in Cairns and Perth. The deal will see Monash IVF pay an initial up-front cash consideration of $9.4 million on a debt free basis.

South32 Ltd (ASX: S32)

The South32 share price is up 5% to $4.69. This appears to have been driven by a broker note out of Macquarie this morning. According to the note, the broker has retained its outperform rating and $6.90 price target on the mining giant's shares. It believes that South32's positive near term outlook bodes well for share buybacks.

The post Why BlueScope, Firefinch, Monash IVF, and South32 shares are pushing higher appeared first on The Motley Fool Australia.

In early trade, the gold and lithium explorer's shares are up 10% to $1.00.

Why is the Firefinch share price charging higher?

Investors have been bidding the Firefinch share price higher today after the company provided an update on the Morila Gold Mine in Mali.

According to the release, the Government of Mali has agreed to extend the establishment convention for the Morila Gold Mine for three years until 16 May 2025. The terms and conditions of the convention remain unchanged to allow the ramp-up of activities and gold production at Morila.

The release notes that the purpose of the convention is to lay down the general, economic, legal, administrative, financial, tax, customs and social terms and conditions as they relate to the Societe des Mines de Morila, the owner and operator of Morila.

The convention sits alongside the mining exploitation licence for Morila, which is valid until 4 August 2029. In due course, Firefinch will seek the further renewal of the convention to align with the term of the mining exploitation licence.

'Morila the Gorilla'

Firefinch highlights that the agreement demonstrates the Government of Mali's support of its activities at Morila, as well as the company's efforts in supporting local communities through the revival of "Morila the Gorilla."

The company's Managing Director, Dr Michael Anderson, commented:

It is fantastic to have a strong relationship with the Malian Government who have shown tremendous support of Firefinch as we ramp up our activities at Morila. Since taking over ownership of the mine, we have worked to deliver on our "Mali first" motto and are pleased to employ a workforce that is 97% Malian. We are very focused on continuing the production ramp-up and look forward to building on our good working relationship with the Malian Government in doing so.

The post Why is the Firefinch share price shooting 10% higher today? appeared first on The Motley Fool Australia.

Its suffering has come amid news of insider selling and updates on the company's planned demerger.

At the time of writing, the Firefinch share price is 89 cents, 5.82% lower than its previous close.

For context, the broader market is also having a rough trot. The benchmark All Ordinaries Index (ASX: XAO) is down 1.22% today and 4.6% over the last week.

Additionally, the S&P/ASX 200 Materials Index (ASX: XMJ) has slipped 2.8% today and 7.25% over the last 7 days.

Here's all the non-price sensitive news Firefinch has released this week.

What's being going on with Firefinch lately?

The Firefinch share price has tumbled over the last 5 sessions on the ASX amid news of insider selling.

Firefinch director, Brendan Borg sold more than 2.5 million of the company's shares on-market for slightly more than $1.11 apiece between 29 April and 3 May, according to an ASX release published last Tuesday. Borg retained a holding of 12 million Firefinch shares following the trades.

Funds owned by Firefinch director, Mark Hepburn also sold 250,000 shares on-market on 3 May, receiving between $1.10 and $1.13 per share. Following the trades, Hepburn indirectly owns more than 2 million Firefinch shares.

The company also provided an update on the company's split and a replacement prospectus yesterday.

While neither release was price-sensitive, the Firefinch share price tumbled 9.5% following their publication.

The demerger will see Firefinch retaining its gold producing assets. Meanwhile, its Goulamina Lithium Project will be managed by new entity, Leo Lithium. Firefinch shareholders will receive 1 Leo Lithium share for every 1.4 Firefinch shares they hold.

They also have access to a pro-rata priority offer under which they can buy 1 new Leo Lithium share for every 10.33 Firefinch shares owned at a cost of 70 cents apiece.

The priority offer – and an accompanying shortfall offer ­– opened yesterday. It's expected to raise $80 million.

Firefinch shareholders will have the option to vote for or against the demerger at a meeting on 31 May.

If the split is approved, Leo Lithium shares are expected to be handed out to Firefinch shareholders on 9 June.

Leo Lithium is pencilled in to list on 16 June under the ticker, LLL.

Firefinch share price snapshot

Recent falls included, the Firefinch share price has slipped 3% since the start of 2022.

Though, it's currently 128% higher than it was this time last year.

The post Why has the Firefinch share price tumbled 22% in a week? appeared first on The Motley Fool Australia.

Firefinch is a gold miner and lithium developer in Mali, West Africa. It owns an 80% interest in the
Morila Gold Mine and 100% of the Goulamina Lithium Project.

The demerger would result in two independent ASX-listed companies — Firefinch and Leo Lithium, as well as the separation of Firefinch's gold and lithium projects.

Goulamina is among the world's largest spodumene mines. It has large scale, high grade, low impurity orebody. Under the proposed deal, Leo Lithium would own Goulamina and Firefinch would own a 20% stake in Leo Lithium.

Why break up?

The rationale behind the demerger is to create "a pure-play lithium developer on the ASX with funding to help accelerate development and growth plans at Goulmamina", the company says.

Leo Lithium has lodged a prospectus for an initial public offering (IPO) of its shares. It has also given the ASX a demerger and offer briefing document explaining the effect of the demerger.

What's the nitty-gritty?

Firefinch shareholders will vote on the demerger at the general meeting in Perth on 31 May. If the demerger proceeds, eligible Firefinch shareholders will be entitled to receive one share in Leo Lithium for every 1.4 Firefinch shares held at the demerger record date of 6 June.

Eligible Firefinch shareholders will also be able to buy Leo Lithium shares at 70 cents per share in a pro-rata priority offer to raise up to $80 million for Leo Lithium to spend developing Goulamina.

Investors can subscribe for one Leo Lithium share per 10.33 Firefinch shares held. Up to 114 million Leo Lithium shares will be issued under the pro-rata offer. The record date for the pro-rata offer is 5 May.

Firefinch directors say 'vote yes'

Firefinch directors have unanimously recommended that Firefinch shareholders vote yes to the demerger. According to the company, every director intends to participate in the pro-rata offer.

Firefinch will subscribe for up to $20 million in Leo Lithium shares, which will be in addition to the pro-rata priority offer, to maintain a 20% interest. Firefinch says this reflects "the conviction Firefinch has in Leo Lithium".

The pro-rata offer implies a 65% attribution of Firefinch's market capitalisation to Leo Lithium.

Firefinch has released a shareholder letter and a prospectus for the demerged Firefinch entity.

Subject to ASX approval, it is anticipated that Leo Lithium shares will begin trading on 16 June.

Firefinch share price recap

The Firefinch share price is up 195% over the past 12 months and almost 22% in the year to date.

The post Firefinch share price leaps 16% on Leo Lithium demerger appeared first on The Motley Fool Australia.

As of Friday's close, the All Ordinaries Index (ASX: XAO) and the S&P/ASX 200 Index (ASX: XJO) were both up 1.1%. Meanwhile, the S&P/ASX 200 Resources Index (ASX: XJR) underperformed, recording a gain of just 0.44%.

But these ASX miners didn't let their sector's poor performance slip them up. They each surged more than 10% in Friday's trade. Let's take a look at what boosted them today.

These ASX mining shares surged more than 10% today

Firefinch Ltd (ASX: FFX)

The Firefinch share price lifted to an intraday high of $1.14 today, representing a 17.5% gain.

It came as the ASX mining company released details on its plan to demerge its lithium assets.

The prospectus for the new company ­– to be named Leo Lithium – dropped this morning.

Firefinch shareholders will be granted one Leo Lithium share for every 1.4 Firefinch shares held. They can also choose to participate in a pro-rata offer.

The demerger scheme will face a shareholder vote next month.

Lithium Plus Minerals Ltd (ASX: LPM)

ASX mining newbie Lithium Plus rocketed 13% to an intraday high of $1.04.

The company listed on the ASX on Tuesday. Amazingly, its share price went 266% higher than its IPO's offer price of 25 cents over its first three days of trading.

Lithium Energy Ltd (ASX: LEL)

The third ASX mining share to take off on Friday is Lithium Energy. Its share price lifted 23.7% to $1.51 at its highest point – a new all-time high.

There's been no news from the company today. However, it announced yesterday that it's been given the governmental green light to start work at its Solaroz Lithium Brine Project.

The post These 3 ASX mining shares leapt more than 10% on Friday appeared first on The Motley Fool Australia.

Shares in the ASX gold miner and lithium developer closed yesterday at $1.03 and are currently trading for 97 cents.

In fact, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is also well into the red this morning, down 1.4%.

Below we take a look at the highlights from the quarter just past, reported this morning by ASX share Firefinch.

What were the highlights from the past quarter?

The Firefinch share price is sliding after the company updated the market on its activities for the three months ending 31 March.

For context, the miner's two projects are located in Mali. The company holds an 80% interest in the Morila Gold Mine and a 100% interest in the Goulamina Lithium Project.

At Morila, Firefinch reported continuing high-grade gold results from its drilling campaign at the Morila Super Pit. Additionally, the miner said significant results from one of the drill holes "may represent a new zone of mineralisation".

The company reported substantial increases in its mineral resources at several deposits within Morila. According to Firefinch, the total mineral resources for the Morila Gold Project has reached 2.5 million ounces of gold.

Gold production for the quarter (Q1) met guidance, coming in at 10,874 ounces.

Firefinch reported production guidance for Q2 in the range of 17,000 to 20,000 ounces of gold. The miner maintained its full-year 2022 production guidance of 100,000 ounces of gold. It expects annualised production rates for the second half of the year to surpass 140,000 ounces of gold.

The company also provided updates on its Goulamina Lithium Project. Goulamina is among the largest undeveloped high-quality spodumene deposits in the world.

Partnering in a 50/50 joint venture with lithium battery materials supplier Ganfeng, Firefinch aims to bring that project into production.

Firefinch said all the required conditions have been met for Ganfeng's investment in the project. During the quarter, Ganfeng contributed US$130 million in cash to the joint venture company.

The demerger of Goulamina into Leo Lithium Limited is reportedly proceeding on schedule.

Firefinch held cash and cash equivalents of $102 million as at 31 March.

Firefinch share price snapshot

Despite weakness over the last week, the past 12 months have seen the Firefinch share price rocket 193%.

By comparison, the All Ordinaries Index (ASX: XAO) has gained 3.5% over the past full year.

The post Firefinch share price tumbles 6% despite meeting gold production guidance appeared first on The Motley Fool Australia.

Firefinch shares are currently trading at $1.035, a 3.27% fall.

For perspective, the S&P/ASX 200 Resources Index (ASX: XJR) is down 0.79% today. Additionally, the gold price has fallen 0.15% in a day, Trading Economics data reveals.

Let's take a look at what this gold producer and lithium developer announced today.

Gold production update

Firefinch advised the company achieved production of 10,874 ounces of gold in the first quarter of 2022 at the Morila gold project in Mali, West Africa.

This was within the company's guidance of 10,000 to 11,500 ounces of gold. However, this does not seem to have impressed investors, judging by the Firefinch share price.

The company's guidance of 100,000 ounces of gold in 2022 remains unchanged. Forecast production for the rest of the year is:

• 17,000 to 20,000 ounces of gold in quarter 2
• 30,000 to 35,000 ounces of gold in quarter 3
• 36,000 to 40,000 ounces of gold in quarter 4

Commenting on the production, Firefinch managing director Dr Michael Anderson said:

After a year in the role as managing director, I am very pleased to report we have delivered on our plan of transitioning from tailings reprocessing to hard rock mining. Our Q1 2022 gold production of 10,874 ounces comfortably met guidance and pleasingly was delivered injury free.

We are on the brink of benefitting from the mining of the Morila Super Pit and N'Tiola, both of which have commenced ahead of schedule.

The higher production forecast in the second half of the year will be driven by production at the Morila super pit.

The company is now mining at the N'Tiola project six weeks earlier than planned. This is taking place together with Malian company EGTF Group.

Firefinch share price snapshot

The Firefinch share price is soaring 21% year to date while it has surged 338% in a year.

In the past month, the company's shares have returned 32%, while they are down 16% in the past week.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned about 7% in the past year.

Firefinch has a market capitalisation of about $748.6 million based on its current share price

The post What's with the Firefinch share price today? appeared first on The Motley Fool Australia.

So-called 'green metals' are those used in cleaner-energy applications. Such shares on the ASX include Pilbara Minerals Ltd (ASX: PLS), Firefinch Ltd (ASX: FFX), and Mineral Resources Ltd (ASX: MIN). Others include Centaurus Metals Limited (ASX: CTM) and Liontown Resources Limited (ASX: LTR).

So what is the outlook for ASX green metals shares?

Green metal transition

Green metals are metals that will be prominent in the transition from fossil fuels to clean energy. They include lithium, graphite, rare earths, nickel, and copper.

Asked if a bubble could be developing in the sector, Argonaut Natural Resources Fund portfolio manager David Franklyn told the Australian Financial Review:

The green materials sector is certainly volatile, which in part reflects the fact that demand is rising quicker than supply. This has been evident in the huge increase in spodumene prices and the spike in nickel prices.

Against that backdrop, it's not unexpected that the sector may attract speculative money whilst also making the valuation of stocks more problematic.

A stock market bubble can form when there is a significant surge in share prices beyond the fundamental value of the companies.

Franklyn noted there has been a strong rebound of multiple lithium stocks in March, including Pilbara and Firefinch.

Share price recap

The Pilbara Minerals share price has soared 26% in a month while Firefinch has rocketed 73%. Meanwhile, Mineral Resources has gained 24%, Liontown Resources has leapt 28%, and Centaurus Metals has surged 17%.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has jumped just under 6% in a month.

The post Is a bubble forming for ASX green metals shares? appeared first on The Motley Fool Australia.