Economic study demonstrates scale, grade, long life, growth potential and robust financial returns

FireFly Metals Ltd. (FFM) released its Preliminary Economic Assessment and updated Mineral Resource Estimate for the 100%-owned Green Bay Ming Mine copper-gold project in Newfoundland, Canada, alongside a concurrent A$180M equity raising.

The PEA base case, operating at 1.8Mtpa, projects an after-tax NPV7% of ~A$2.2B and an after-tax IRR of 41%. The mine life is estimated at ~32 years, with average steady-state payable production of ~50kt CuEq/year over 14 years and a peak of ~61kt CuEq. C1 cash costs are projected at US$2.05/lb CuEq, or US$1.17/lb Cu net of by-product credits. Initial capital is estimated at A$513M, net of ~A$58M refundable Canadian tax credits, resulting in a payback period of 1.9 years. Life-of-mine post-tax free cash flow is estimated at ~A$5.4B.

An alternative case at 4.6Mtpa yields an after-tax NPV7% of ~A$3.0B and an after-tax IRR of 39%, with a mine life of ~22 years. Steady-state production is cited as ~90kt CuEq/year over 11 years, with six years averaging ~100kt and a peak of ~106kt CuEq. C1 cash costs are projected at US$1.84/lb CuEq, or US$1.02/lb Cu net of by-product credits. Expansion capital is estimated at A$476M, net of ~A$53M tax credits, expected to be mostly funded from base-case cash flow, with a payback of ~3.7 years.

Commodity assumptions in the PEA are below spot prices: copper at US$5.00/lb versus US$6.60/lb spot, gold at US$3,500/oz versus US$4,335/oz spot, and silver at US$44/oz versus US$63/oz spot.

The updated Mineral Resource Estimate reports Green Bay total Measured and Indicated resources of 60.2Mt @ 2.4% CuEq and total Inferred resources of 23.5Mt @ 2.5% CuEq. The Ming deposit holds 57.3Mt @ 2.4% CuEq in Measured and Indicated categories and 17.3Mt @ 2.8% CuEq in Inferred. The High-grade Core Zone contains 18.1Mt @ 4.3% CuEq in Measured and Indicated categories plus 7.0Mt @ 4.4% CuEq in Inferred. The Ming Measured and Indicated resources increased 21% and CuEq grade increased 22% versus the previous update.

Financing includes an A$180M equity raising at A$1.78 per share via ASX placement and Canadian bought deal, plus a non-underwritten Share Purchase Plan up to A$10M. The company cites existing cash and liquid investments of A$183M and indicative debt capacity above US$350M for the 1.8Mtpa case.

The Feasibility Study is targeted for Q1 2027, with Final Investment Decision and construction targeted for H1 2027. First concentrate production is targeted for mid-2029. The maiden Ore Reserve is now expected with the next Mineral Resource Estimate update alongside the DFS in Q1 2027.

FireFly Metals Ltd. (FFM) released its first economic study for the upscaled Green Bay restart, a Preliminary Economic Assessment (PEA) that presents base-case net present value (NPV) of approximately A$2.2 billion at a 7% discount rate. This valuation compares favorably with the company’s pre-raise market capitalization of roughly A$1.44 billion. The study outlines a base-case internal rate of return (IRR) of 41%, a payback period of less than two years, low C1 costs, and a net initial capital expenditure of A$513 million, supporting the characterization of Green Bay as a large, low-cost copper project in a tier-one jurisdiction.

Concurrently, an updated mineral resource estimate (MRE) has materially expanded the higher-confidence resource base. The high-grade Core Zone now contains 18.1 million tonnes at 4.3% copper equivalent (CuEq) measured and indicated (M&I) resources. To support development, the company conducted an equity raising at A$1.78 per share, a modest discount to the last close of A$1.87. This raise, combined with existing cash and prospective debt capacity, provides A$180 million in funding toward a final investment decision (FID).

The PEA was previously guided for release around this time, meaning its arrival is not an unexpected catalyst, and much of the high-grade drilling was already reported in earlier releases. The PEA remains preliminary and includes inferred resources in the mine plan; it is not a feasibility study, and no ore reserve has yet been declared. The timeline for the maiden ore reserve has slipped from late 2026, as previously disclosed, to the first quarter of 2027.

An alternative 4.6 million tonnes per annum (Mtpa) case was also presented, though it is not the base-case decision path. Its higher NPV depends on successful scale-up and an additional A$476 million expansion. The financing does not disclose a first-time strategic investor, consisting instead of institutional and retail capital.

FireFly Metals Ltd is an ASX and TSX listed copper-gold developer. Its flagship asset is the 100%-owned Green Bay Copper-Gold Project in Newfoundland and Labrador, Canada, centered on the past-producing Ming Mine.

Historical production at the Ming Mine is cited as 6.7Mt @ 2.0% Cu and 1.6g/t Au across 1872–1952 and 2012–2023. The project features substantial existing infrastructure, including approximately A$250M of site infrastructure, more than 20km of accessible underground development, hydroelectric power at about 6c/kWh, and a port located about 6km from the site.

The Preliminary Economic Assessment (PEA) contemplates underground long-hole open stoping with paste backfill. The processing design utilizes SAG and ball milling with two-stage flotation, with recoveries estimated at greater than 98% for copper and greater than 80% for precious metals.

The updated Green Bay resource includes the Ming deposit and the unchanged Little Deer deposit. However, the PEA mine plan uses only the Ming deposit resource; regional targets and Little Deer are not included in the PEA economics.

FireFly sold its Ontario gold assets, including Pickle Crow and Sioux Lookout, to Bellavista Resources in 2026 to focus on Green Bay. No royalty or streaming agreements are disclosed in the provided materials. The investor presentation states there are no offtake or streaming agreements, though the release does not expressly state the project is royalty-free, so royalty status cannot be fully confirmed from the provided documents.