The pre feasibility study had an NPV of $300m based on a Tungsten price of $255 per mtu. The definitive feasibility study was delayed until now due to an upgrade in the concentrate and reworking of the process flowsheet.
Given the scope and size of the resources have increased and the price per mtu is now over 50% higher I would be assuming that the project NPV will be in excess of $700m-$1b versus a current market cap of $29m........The additional $100 per mtu is pure margin given the economics stacked up at $255....
We will also get an export restriction from the Chinese at some time in the future which could further push the price per mtu to record levels.
This feels like buying LYC before it was even listed :)
WLF Price at posting:
40.0¢ Sentiment: Buy Disclosure: Held
