I am too earlier to call on WA8 but it seems market cap too...

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Bullish786

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09/03/24

20:59

Post #: 72828991
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Originally posted by Joelstar: ↑

Hi @speculator101
Appreciate you generously spending the time to run your ruler over WA8.

Now for the fun stuff.

My argument is can 29M afford not to look for another cheap ore source to feed its mills latent capacity. They may choose to either toll treat, JV 50/50 or perhaps even an asset purchase agreement?
Their current 18c per pound Cu margin is not going to keep their lights on for too much longer with their Capricorn Mine still in deep doo doo.
They need to generate more free cash QUICKLY!!!
The WA8 crew can see 29M plants light halo from their Warriedar camp.
An existing relationship between the companies already exists (I'm pretty sure WA8 use 29M's camp facilities on a daily basis).

Benefits for 29M.

WA8 are in the possession of several high-grade low strip already permitted pits. All pits are accessed by existing haul roads and camp infrastructure. This option potentially creates a capital light stopgap to temporary replace the need to speed up Gossan Valley's 100-million-dollar approval/development.

Xantho Extended, Hougoumont Extended and Oizon mines all sit below 1.6km in depth, adding to OPEX cost and technical complexity of the Gossan Hill underground operation (ventilation, cooling etc)

Gives 29M the ability to pushback mining/production of Zinc rich stopes, 29M current Zinc offtake agreement Zn price significantly below current Zn spot price.

Increasing gold production will give 29M the ability to remove 10k Au ounce hedge book burden, saving the business a further 7.5 million.

Golden Grove:
Mill: Rated at 1.8mtpa
Current throughput 1.6mtpa

Throughput after CAPEX lite plant modifications 2mpta
Ore is separated into 3 distinct concentrates. (Cu, Zn, Au Ag Lb)

I've run out of time lol.
To be continued Spec...

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I am too earlier to call on WA8 but it seems market cap too cheap and on radar after gold just reached all time high

WA8 Price at posting: 4.1¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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