WSA nearing its 2.00 buyzone yet again despite NP rising at 8.45
NP headed to 10-12 imho
WSA needs more mill capacity so it can bypass BHP in tolling its ore at low prices and high monopoly price tolling fees. Its current mill is only 600kTpa compared to Nova IGO mill of 1.5MTpa and POS LJ mill of 1.,5MTpa. Thats almost a third of the size and is quite small for its MCap.
WSA needs higher grades and more mill capacity but it would take 2 years to build & cost $500M to build like it costs SIR/IGO to build the Novas mill of 1.5MTpa in 2014-2016.
May be cheaper to toll its ore using the POS LJ mill nearby or to t/o PAN which is half its MC & cheap atm. PAN & POS & MCR might overtake WSA MC easy at this rate.
But we know WSA is a trading stock 2-3/4 so buyzone around 2-2.20 and then good news again with NP at 8.45. Its FCF is booming right now but you wouldnt think it on the SP action.
WSA Price at posting:
$2.24 Sentiment: Buy Disclosure: Not Held
