The Firefinch Ltd (ASX: FFX) share price is falling today despite a seemingly positive production update from the company.
Firefinch shares are currently trading at $1.035, a 3.27% fall.
For perspective, the S&P/ASX 200 Resources Index (ASX: XJR) is down 0.79% today. Additionally, the gold price has fallen 0.15% in a day, Trading Economics data reveals.
Let's take a look at what this gold producer and lithium developer announced today.
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Gold production update
Firefinch advised the company achieved production of 10,874 ounces of gold in the first quarter of 2022 at the Morila gold project in Mali, West Africa.
This was within the company's guidance of 10,000 to 11,500 ounces of gold. However, this does not seem to have impressed investors, judging by the Firefinch share price.
The company's guidance of 100,000 ounces of gold in 2022 remains unchanged. Forecast production for the rest of the year is:
- 17,000 to 20,000 ounces of gold in quarter 2
- 30,000 to 35,000 ounces of gold in quarter 3
- 36,000 to 40,000 ounces of gold in quarter 4
Commenting on the production, Firefinch managing director Dr Michael Anderson said:
After a year in the role as managing director, I am very pleased to report we have delivered on our plan of transitioning from tailings reprocessing to hard rock mining. Our Q1 2022 gold production of 10,874 ounces comfortably met guidance and pleasingly was delivered injury free.
We are on the brink of benefitting from the mining of the Morila Super Pit and N'Tiola, both of which have commenced ahead of schedule.
The higher production forecast in the second half of the year will be driven by production at the Morila super pit.
The company is now mining at the N'Tiola project six weeks earlier than planned. This is taking place together with Malian company EGTF Group.
Firefinch share price snapshot
The Firefinch share price is soaring 21% year to date while it has surged 338% in a year.
In the past month, the company's shares have returned 32%, while they are down 16% in the past week.
In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned about 7% in the past year.
Firefinch has a market capitalisation of about $748.6 million based on its current share price
