Stock markets are at record highs, expanding exponentially. The obvious thing rocking the mind of investors is that whether there are still some stocks with steam left. Here we bring Two ASX Stocks under $1 that could turn out to be future multibaggers.
FireFly Metals Limited (ASX: FFM)
FireFly Metals Limited reported strong progress in its recent quarterly update for the period ending 30 June 2024, highlighted by exceptional drilling results at its Green Bay copper-gold project in Canada.
The company identified high-grade assays with copper grades up to 10% and gold grades up to 4 g/t, demonstrating continuous mineralisation 460 meters beyond the current resource boundaries. These promising results will contribute to a Resource update scheduled for September 2024, with the current Mineral Resource estimated at 39.2 million tonnes at 2.1% CuEq.
A recent $52 million capital raise has significantly bolstered FireFly’s cash reserves to A$38.1 million, allowing for accelerated exploration and development activities. This includes the deployment of additional drill rigs and the initiation of geophysical surveys, such as downhole Electromagnetic (DHEM) and regional airborne VTEM surveys.
During the quarter, the company completed 52 drill holes totalling 22,705 meters and reported assays for the first 26 holes, with ongoing analysis for the remaining. Financially, FireFly managed a substantial net cash inflow of A$48.7 million from financing activities, offsetting cash outflows of A$2.7 million from operating activities and A$9.7 million from investing activities, positioning the company well for Future Growth.
FireFly Metals Limited is advancing rapidly with its Green Bay copper-gold project, capitalizing on a large, highly prospective, and largely under-explored land package. The company's progress is marked by exceptional drilling results, which suggest significant potential for transformative discoveries. FireFly is not only moving forward with its current activities but is also poised to launch an extensive geophysics program. This program aims to identify and prioritize regional drilling targets, further enhancing the potential for major breakthroughs and expanding the scope of the project's mineralization.
American Rare Earths Limited (ASX: ARR)
American Rare Earths Limited is strategically advancing its Halleck Creek Project to boost shareholder value and attract U.S. investment. The company is reorganizing operations and structuring the project under a fully-owned subsidiary, Wyoming Rare (USA) Inc. (“WRI”), to appeal to U.S. investors and facilitate development.
The surface geochemistry analysis from the Halleck Creek Rare Earths project has revealed significant findings that highlight the Bluegrass area as a key focus for exploration and expansion. Out of 88 surface geochemical samples collected across the Bluegrass, northern Overton Mountain, and Sommers Flat Area, 40 samples showed Total Rare Earth Oxide (TREO) grades reaching up to 4,815 ppm. The remaining 48 samples exhibited even higher TREO grades, up to 5,280 ppm.
American Rare Earths Limited recently achieved several significant milestones including successfully securing a non-dilutive grant of A$10.7 million from the State of Wyoming for the Cowboy State Mine. This grant, which includes support for permitting, will provide critical funding without diluting existing shareholders' equity.
Moreover, ARR’s latest assay results have revealed an expansion of rare earth enrichment at the Cowboy State Mine. These findings enhance the project's potential and may lead to further development opportunities.
Zircon, often a minor byproduct in the processing of heavy mineral sands, holds substantial value due to its diverse applications across various industries. The recent discovery of zircon as a potential co-product in the Halleck Creek Project represents a significant opportunity for American Rare Earths Limited.
Additionally, the expansion of rare earth enrichment at the Cowboy State Mine and the potential revenue from zircon as a co-product could significantly improve project economics. With less than 75% of the mineralized zones drilled and the deposit open at depth, Halleck Creek holds significant exploration potential.
The recent Scoping Study highlights the project's commercial viability, projecting a Net Present Value (NPV) of $673.9 million, an Internal Rate of Return (IRR) of 22.5%, and a payback period of 2.9 years, with an initial capital expenditure of $456.1 million. These moves aim to position the project favorably in the market and maximize value for existing shareholders with potential for increased value and growth.
Source: Company’s Report
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