ASX Code: WHE Company: WildHorse Energy Limited Sector: Energy Listing Date: 10 November 2006 Issue price: 40c Shares on Issue: 82,026,000 Options on Issue: 3,650,000 (unlisted) Market Cap: A147.6m
Current price: $1.80
http://www.wildhorse.com.au/
Today's closing shareprice was $1.80, up 7.78%. After hitting an intraday high late January of $2.03, it has traded mostly between $1.60 and $1.75. This has been due to Macquarie Bank unloading some, and 17,350,000 shares coming out of Escrow on 16 April.
Today saw some pretty agressive buying from offscreen. A push through the closing all time high of $1.90 will signal the next leg up. The sell depth is quite thin, and would not take much at all to get moving.
It's worth having a look at WHE's roadshow presentation from 16 January 2007 (easily found on the company's website - address above). This shows the company's objectives are:
- 45 million pounds of JORC compliant U308 reserves - Three projects at bankable feasability stage (PFS completed) within 18-24 months - At least two (2) operational uranium mines within four (4) years.
COMPARATIVE: With their Bison Basin Project, WildHorse Energy could be rated as a near term producer within 14 months.... from the presentation, this is what they were saying 4 months ago, when uranium was well under $100 / lb
Current WHE share price: ~1.43 WHE Market Capitalisation: $119m Valuation / lbs (based on 45 million pound target): $2.64 / lb ASX Developers Average EV . pound JORC Resource: $8.10 / lb Implied WHE share price: $4.39 ASX Producers Average EV / pound JORC Resource $13.30 / lb Implied WHE share price: $6.80
Well NOW:
Current WHE share price: ~1.80 WHE Market Capitalisation: $147m
And with uranium now at $113 / lb, the figures above just become better.
45,000,000 lbs x $113 = $5.085 billion IGV
This stock is now the cheapest uranium stock on the ASX based on market cap vs lbs in the ground. 147,646,800 / 45,000,000 = $3.28 / lb
Marathon Resources was previously the cheapest, but with its recent climb, Wildhorse is now the cheapest.
Disclosure: I hold. It's too risky not to hold. I am expecting a significant re-rating in the near future. My target price is $4.50 by the end of 2007. I wonder how close i'll be.
SO4 Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
