PhillipCapital Research Update, page-42

Re: yesterday’s NEW ASX listing: Metals X (MLX) gold spinoff, Westgold Resources (WGX).

WGX owns three operating gold projects with a fourth under refurbishment, all located in WA.

At the close, WGX had a market capitalisation of $524m.

Per MLX’s Sep 2016 WGX presentation (refer MLX ASX releases), WGX has a Gold Resource of 15.4m oz.

This compares with HAV’s 2.4m oz of Au & 915kt of Cu.  [I’ve ignored HAV’s other resources (Mo, Co, Fe) for this comparison. FWIW, Clark888’s recent ISV analysis indicated these ‘excluded’ assets represented c. 9% of HAV’s value.]

At this morning’s spot prices, HAV’s Au & Cu come to an Au equivalent of 7 moz or 45.5% of WGX’s Au resource. A market capitalisation comparable with WGX would put HAV at c. $240m pro rata or more than double its current share price.

Another metric included in the abovementioned WGX presentation is ‘EV/Oz of Gold Resource’, the average of WGX’s peer comparison being A$157/oz in August 2016 (slide 12). It must be noted that this metric would have changed since then given the decline in Au spot price. Nevertheless, applying this metric to HAV’s 7m oz Au equivalent, as calculated above, puts HAV’s EV at $1.1 billion.

Ilan, you have a point & at 61.5cps it’s obvious the market isn’t ‘buying’ HAV.

Despite regular positive and informative contributions from self-proclaimed ‘fanboys’ (and others) on here, at the end of the day, to my (and others) chagrin, HAV’s share price is where it is.

Maybe choochx01’s 2017 TO ‘tip’ comes to fruition… or not…

Then, there’s always this encouraging Ben Graham quote …

“In the short run, the market is a voting machine but in the long run, it is a weighing machine.”

GLTAH!

DYOR.