Lets compare JORC resources
Reserves are infilled assays but resources show the larger ore bodies discovered
BHP 4,100KT MCap $122,000M NWEST say $12,200M
WSA 103KT (F)
619KT (Cosmos) MCap $1,100M
POS 406KT MCap $280M
PAN 226KT MCap $523M
IGO 208KT MCap $3,500M (NI portion)
MCR 196KT =
63KT cassini, 133KT other Mcap $673M
Based on the above, the market is substantially overvaluing MCR non cassini resources & WSA cosmos resources whilst giving massive premiums to actual producers IGO BHP WSA.
Market is saying it expects Cosmos to be producing substantially & IGO & BHP production to increase while discounting PAN POS production capacity & overvaluing MCR production longevity & capacity.
This is why the "experts" are saying WSA is not worth that much & its fair value (if not overvalued here) as much of the gamble of IGO is on cosmos rather than finding more at Forrestania or at Nova.
IGO is gambling that it will keep the 2nd spot in Ni production for the next 3-4 years by taking out the 3rd largest producer WSA but after that as FF & Nova peter out what then?! If they cant find any more at Nova & FF then cosmos becomes their only mine near BHPs mills & their $550M of built mills at Nova & FF become redundant & wil have to be moved up to cosmos.
They are gambling they will find more at Nova & FF despite 6 years of drilling there not achieving much as LOM has steadily reduced at both despite frantic drilling.
IGO may well be buying a white elephant like Lanfranchi has turned out for BMM/Edison from PAN.
Take the money and run, RUN like you STOLE IT!
WSA Price at posting:
$3.44 Sentiment: Buy Disclosure: Not Held
