Firefinch jumps on J Capital report
(Kitco News) - The upside for Firefinch (ASX:FFX) is between 70% and 130%, writes J Capital Research in a report published this week.
Firefinch is an ASX-listed gold miner and lithium developer, with two assets in Mali—the Morila gold mine and Goulamina lithium project.
"The political risk in Mali has scared investors away from investigating the value of Firefinch (FFX ASX). We believe Firefinch’s under-appreciated lithium asset, Goulamina, alongside its perational gold mine, Morila, are significantly undervalued based on the current market capitalization," writes the report's authors. "We view both the gold and the lithium project as de-risked as they are operational and fully funded respectively. We believe Firefinch should be trading at a valuation of between $1.68 bln and $2.28 bln. With the current market cap at $990 mln, the upside is between 70% and 130%."
Firefinch has traded up 11% to 94 cents over the past five days.
In 2020 NOVAGOLD filed a lawsuit against J Capital after the research firm published a report critical of NOVAGOLD.