ffm chart, page-125

This snippet came into my inbox overnight from Barry Fitzgerald renowned resource writer.

What copper price is plugged into company valuation models obviously has a big impact on share price targets. It’s a point highlighted recently in a research note on FireFly (ASX:FFM), mentioned here last week when it was trading at 69.5c, and which is now trading at 76.5c.
Barrenjoey initiated on the stock this week and set a price target of $1.60, using a long-run copper price of $US5/lb, recently increased from $US4/lb.

“We see upside risks to historical demand growth and supply constrained by capital and operating cost inflation,” Barrenjoey said.

Add in the developing prospect of China stimulus and the $US4/lb copper that some in the market are still using in their stock valuations is almost certainly a thing of the past (Goldman Sachs has tipped $US5.45/lb by the end of the year), suggesting the copper stocks have some serious valuation upside.

The bolding is from me and in my view highlights the magnificent opportunity Firefly Metals (FFM) represents in the copper space.

Cheers.....D

P.S copper up in US trading overnight.