blue sky ahead

WPG: just announcement a significant announcement of capital raising and project financing.....

Previously, i stated that the company will be releasing Bankable Feasibility Study and then the Project Financing. It went the other way around with the project finance announced first, now Bankable Feasibility Study will due shortly..... My long term target is $3.....

At my initual $1.50 target: that is over 40% from first initiated last week...

This is how a mining stock work:
1/ First a company make some DISCOVERIES...... my comment: they are still rubbish company to me b/c there are 100s of companies can say that....
2/ Discoveries turn into Resource estimation (JORC): what is the values of the discoveries.
3/ Scoping study: a brief study outlining whether the discoveries might be profitable or not if the company
4/ Feasibility study: it is like a scoping studies in more details..... might also involve more drilling to prove up the resources estimation. might include, capital cost (CAPEX), operating cost (OPEX), estimate of forward earnings... many assumptions will be applied here... etc
5/ Bankable Study: a THOROUGH and FULL DETAILS of the whole project... normally at this stage, company is within year(s) of production (as short as less than 1 year).
6/ Start of production...
7/ Actual result: maybe a few months or one year after production......

As each stage past, the company's value will gain more recognition and thus higher share price.....

For my own trading/investment rule:
1/ I apply a forward PE of 2X (which mean to value the company at 2 times of estimated Net Profit after tax) at (4) Feasib Study/(5)Bankable Study
2/ I apply a PE of 5X: at start of production.
3/ I apply a PE of 10X: maybe after one year of production.....

Of course adjustment to these valuations and estimations by myself need some flexibility as there are lots of variables that need to consider, like how big is the resources, expected future metals prices, life of projects.......