WGR western gold resources limited.

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8.7¢

Ann: WGR executes binding toll milling agreement, page-4

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HongFang

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16/06/25

13:37

Post #: 79448782
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Originally posted by joedirt23: ↑

It depends on the bond abrasion index and they won't know that until they do testwork on the ore. If the ore is super hard and WMC agreed today on a certain price, their management would be fired.

Anyways, just doing a quick back of the envelope calc based on the Corporate Presentation announcement from March, it seems this is still super undervalued now that we've locked in a toll treatment agreement.

Based on 34,000oz at $3500/oz gold price, they said they'd have $38.1M profits. So from the $119M revenue, that leaves them with $81M AISC (or $2,379/oz).
Applying that to a gold price of $5000/oz, we get $170M revenue, minus the $81M, we end up with $89M profits.

It'll cost about $10M to get into production and I'm sure WMC will want more of a cut given the high gold price, but even if the profits end up being $60M over the next 2-3 years, that's a pretty good return with very little risk for a $20M market cap.

Please critique my analysis by the way, would love to see if any of my assumptions are off.

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They should still know the fee formula incorporating the bond abrasion index and any other variables should they not?

WGR Price at posting: 8.9¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 8.7¢		Change 0.000(0.00%)		Mkt cap ! $20.01M

Open	High	Low	Value	Volume
0.0¢	0.0¢	0.0¢	$0	0

Buyers (Bids)

No.	Vol.	Price($)
3	129369	8.7¢

Sellers (Offers)

Price($)	Vol.	No.
9.4¢	164000	1

View Market Depth

No.	Vol.	Price($)
3	129369	0.087
2	176458	0.086
2	175000	0.080
1	80000	0.079
4	350000	0.076

Price($)	Vol.	No.
0.094	164000	1
0.099	116303	3
0.100	565949	4
0.105	1345	1
0.110	27272	1

Last trade - 13.34pm 01/08/2025 (20 minute delay)

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Ann: WGR executes binding toll milling agreement, page-4

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