Excellent presentation. Kiaka development is on time on budget. Wonder why the SP is still not breaking out yet? Another quarter to go Kiaka will be commissioning.
Let's run some number on 2025 alone. Production will be 350koz in total. Assume current POG and AISC, If exchange rate stays (1:1.61), margin will be US$1500/oz or AU$2412/oz. the attributed net profits will be (2412*350000*0.9 - 4423*350000*0.08)*0.725*8=$3688428800 Here, 0.9 is the net ounce ratio to WAF after government's 10%; 7% royalty + 1% community cuts on total ouput; 27.5% income tax. I use the PE ratio of 8, same as current PRU's. Divideded by 1.4b SOI, the SP will be AU$2.63.
Think of the year after, production will be higher, AISC should be lower. Will we get $3 fair valuation? Market has a habbit of over shooting and under selling. Maybe $3.5/share is not a dream.
I think the cap on WAF share price will be removed anytime now. GLTAH.
WAF Price at posting:
$1.67 Sentiment: None Disclosure: Held
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