Hi Silver, Would I support it currently... hmm... good question. Though in the end it would come down to what PRU would actually offer. It would have to be a pretty hefty premium to WAFs current share price. As whilst PRU is riding high due its new Yaoure mine, the reality is, it has 1 good mine, 1 questionable 1 and 1 that is simply too small for a mid tier producer aspiring to be a 1m ounce producer. Versus WAF with 1 good mine (not quite as good as Yaoure, albeit, it has a longer mine life) and 1 great mine being built. Country risk is the main bugbear for WAF. PRUs assets are in better jurisdictions, well at least for now. I think PRUs script is too rich, and WAF too undervalued, but... the market rarely is fair.
I do agree that PRU/WAF would create a 900-950k p.a producer with arguably some of the best assets in West Africa. I do think Richard would like to build at least 1 more mine before anything happens at WAF, but... that is pure 'gut feel'.
WAF has an E/V of $800m AUD. Crazy.... well especially compared to PRUs $2.6b. Interesting to see general weakness in the sector today. Perhaps preparing for a bumpy week with U.S interest rates moves ahead.
WAF Price at posting:
96.0¢ Sentiment: Buy Disclosure: Held
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