Breaking Out: While copper's price oscillates, this mid-cap explorer's running hot

Breaking Out is a technical analysis-fuelled, short ‘n’ sharp take on rising ASX stocks. Each week, Steve Collette – head of Collette Capital in Melbourne – narrows in on one that’s caught his eye.

Copper-gold hunter FireFly Metals (ASX:FFM) has been on fire in 2024 – rallying from lows of 45c up to prints just below $1.

It boasts some of the best price action in the emerging mid-cap space within the sector, and continues to attract buying attention on any pullback.

Wanting to buy copper is easy water-cooler chat given its myriad industrial applications and role in the electrification of everything.

Yet the commodity itself has remained typically volatile, with a fierce run from below 3.70 to above 5 from February to May this year, giving way to a pullback to below 4.00 again more recently.

This hasn’t mattered overly to Firefly Metals, with ongoing exploration success and investor interest keeping the stock relatively bid during the pullback and then on to new highs now as copper again gets off the mat (4.14 at the time of writing).

For FFM, there is a longer-term uptrend from earlier in the year that appears to be providing support on broader pullbacks when they occur, currently clocking in at around 77.5c.

The stock broke out beyond previous highs at 90c on August 22, when the company announced new regional copper and gold targets at the Green Bay Project.

These guys are active!

They spoke for $38m in cash as at the end of June, good only for 3.2 quarters of activity to come – with the September quarter alone to cost them $11.8m by their reckoning – so one cannot discount a raise in coming weeks and given current levels.

Best case short-term the 90c breakout level holds, and the copper price continues to bounce to coincide with continued exploration success.

Collette Capital offers IMA services to wholesale clients only. Learn more at www.collette.capital

Collette Capital is a Corporate Authorised Representative (CAR: 128443) of Sanlam Private Wealth (AFSL 337927), and only provides general advice.

Collette Capital advise that they and persons associated with them may have an interest in the above securities.

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