Management is the key for me Mac loves the Registry – top drawer!!
Now the first JORC has impressed on the upside
Something to consider:
The EV/lb valuation for the 30mill lbs is $10.03 ... This is about standard ATM ... But WHE gets a premium for Management/backers & nearness to production, etc, so in my opinion it could easily deserve a EV/lb of around $20 ..... ie: making a SP up to about $7.00
If that sounds exorbitant, think of AGS with a current EV/lb of $58.00 on B4M initial JORC!! Yes, $58.00!!!!
Getting that into perspective, if WHE had the same EV ratio it would have a SP for WHE of $21.00 on the initial Pecs JORC alone!!! ..... LOL
Now, we know that AGS has this premium for: *Nearness to production *Location in SA *Heathgate connection
But WHE has a number of GREAT factors too that warrant a premium, so as I said, a SP of between $5-$7 is not out the question. The market will decide.
As WHE boost the JORC .. Lets say to the next level of 50mill lbs after we add Sweetwater & Bison ..... Then using an EV/lb of $10 … we would get a SP projection of $6.00 - & if we then also include a premium, we then go toward a SP of $10.00 plus. PLUS of course we have heaps of action happening, which could mean any announcement from left field as well, so, heaps of potential SP drivers.
So, short-term, we should see consolidation then up to $5 plus as a reality, but med-long term I expect a multi-bagger still probable from this price
Cheers
SO4 Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held