Commodity price weakness in REE, TiO2, or HPA, reducing peer multiples and project value.
Funding difficulties in a tight market, increasing dilution or financial strain.
Execution delays in Salazar’s concentrate studies, offtake agreements, or PFS.
Geological setbacks, such as resource downgrades or poor drilling results.
Low liquidity and limited market visibility, exacerbating the discount.
The asset-based valuation remains valid in principle but may have overestimated WC1’s value due to optimistic peer multiples and assumptions about timely milestones. At A$0.02, WC1 trades at a significant discount (Price/NAV ~0.06x), suggesting potential upside if milestones are met and REE markets recover. However, investors should weigh the risks of further delays, funding challenges, and commodity price volatility."
Looking at reports from 2023 and 2024, it appears that WC1 no longer have the lithium projects in Nevada or Hermit Hill in the NT. Nantilla and Cawkers Well near Bulla Park have also dropped off the radar. For a junior miner with limited funds, they had a lot on their plates in 2023/2024.
Slimmed down management; slimmed down number of projects; plenty of metal in the ground, drilling ongoing, price at $0.02, under 200m shares on issue (likely to change before long as capital raise will be required), chart and volume look compelling after last week, junior resource sector waking up.
Clearly not everyone's cup of tea; will stay around a little longer and see what happens.
"Not a professional investor or financial advisor. The above is my personal opinion only, not financial advice. Always do your own research and consult a qualified professional before investing. Information and data provided may be outdated, incomplete, or inaccurate."
WC1 Price at posting:
2.4¢ Sentiment: None Disclosure: Held
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