This is not financial or investment advice and you should do your own assessment and/or speak with a qualified financial advisor:
If WWI would start production, my calculations would place WWI's Discounted Cashflow Share Price at approx. $0.134 AUD a share, that's a greater than 10x the current value.
Shares Outstanding: 3Bn Gold Price: $1,940 USD (Av price '23) ASIC: $977 USD as per presentations Ramp: 4 Years as per presentations Steady State: 65,000 Oz's (approx. 92% of presentation value) Tax Rate: 30% Cash IR: 4% Discount Rate: 20% Debt IR: 12%
If WWI are disciplined with their production costs, board and senior mgmt costs and go on a journey of stock piling cash, WWI (in this model) would be cashflow positive, debt free and have a war-chest to buy other investments from year 4-5. Due to the long Life of Mine, WWI could have 20-25yrs of consistent cashflow, to buy other investments, with strong IP/experience with a start-up mine in Africa. Then WWI would 2-10x again depending on the investment(s) WWI buys, that's when the serious money gets made.
WWI in the current production state = a discounted Cashflow Share Price at $0.000 AUD, actually it's less than that because of fixed expenses over the next 10 years, i.e. paying for an operations, general admin, legal, fees and services for zero production.
4.2Moz (in Mining Right 1) is worth nothing, if it stays in the ground, push the button on mining, let's get it going Chairman!
Happy Monday All
WWI Price at posting:
1.2¢ Sentiment: Hold Disclosure: Held
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