WA1

1.33%

$14.86 wa1 resources ltd

Whats with the 25k number?, go through all of CMOC's annual...

First 9160 Last

Share
Profile

Follow
Naydoe

1,765 Posts.

513

19/06/24

15:40

Post #: 74393445
Share

Originally posted by Wurlitch: ↑

@RAP003 for what it is worth I am expecting an MRE of 200Mt @ around 1% Nb2O5.
At the disclosed Met results this would produce 1Mt of Nb concentrate which would produce 1Mt of FeNb (65)
At a price of $25,000 AUD per ton this would mean a recoverable resource valuation of $409 per share.
An EV/R ratio of 1% = $4.09 per share.
At a ratio of 5% this becomes $20.49 per share.

Given the constraints of the Nb market, the lack of transparency in Nb pricing, Luni's location and the extended timeframe until production begins combined with WA1's position on the Lassonde Curve I feel a EV/R ratio of 2.5 is more realistic, this would equate to a SP of $10.22

If we project 8-10 years into the future Luni may produce around 30Kt of FeNb per year without disrupting the market at a price that probably will not be much different i.e. $25,000 per ton.
If Luni operates on an after tax margin of $12,000 per ton this would mean EPS would be around $3.60, (100m SOI 2030>.
Multiple this by a PER of 8 and you get a SP of $28.80 in 8-10 years time.

Given the expected spike in the current share price with the pending announcement of the MER I would consider it prudent to consider an exit strategy shortly after it is announced as after this the slippery slope of Lassode's Curve will become apparent.

For those that think a TO is likely I think it is unlikely until at least after a DFS.

For those that think a production will occur earlier ponder over the reality that the average time for EPA approval of mines is 4 years in Australia, if you doubt this ask REO execs. Nb production is not environmentally friendly and requires considerable energy.

Not advice just my thoughts to ensure holders lock in their profits. And remember the BEOT makes money on a falling SP, unlike retail.

Expand

Whats with the 25k number?, go through all of CMOC's annual reports, it shows sale price around 50-60k AUD.

WA1 Price at posting: $20.29 Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

RHK

Red Hawk upgrades Blacksmith with DSO mineral resource at the Eagle Deposit

Capital raisings wrap: Brainchip, Ovanti, Lake and VHM

MND

Monadelphous inks $200M contract with Woodside to help build Pluto LNG – but will it make Scarborough cheaper?

MIN

MinRes jumps 5% as the company meets production guidance – depressed iron ore prices be damned

HRZ

Horizon firms up ore reserve for Boorara ahead of FY25 Q1 development decision

IGO

IGO kicks off earn-in copper drilling on-site Encounter's Yeneena play as it adopts new identity

ASX Market Open: ASX200 to rise for Friday session | July 26

NVA

Nova locks in NASDAQ US market listing at a value of only US$3.3M as ASX gets quieter and quieter

Nine's staff strike as Paris Olympic coverage begins

TRP

Tissue Repairs soars nearly 32% on TGA approval for wound healing gel

There are more pages in this discussion • 1,964 more messages in this thread...

First 9160 Last

Add WA1 (ASX) to my watchlist

(20min delay)
Last $14.86		Change -0.200(1.33%)		Mkt cap ! $963.9M

Open	High	Low	Value	Volume
$15.27	$15.44	$14.80	$5.294M	353.2K

Buyers (Bids)

No.	Vol.	Price($)
1	1857	$14.86

Sellers (Offers)

Price($)	Vol.	No.
$14.88	50	1

View Market Depth

No.	Vol.	Price($)
1	1857	14.860
2	4159	14.850
1	300	14.830
2	620	14.820
5	2656	14.810

Price($)	Vol.	No.
14.880	50	1
14.900	1000	1
14.910	4000	1
15.000	41813	2
15.100	3250	1

Last trade - 16.10pm 26/07/2024 (20 minute delay)

WA1 (ASX) Chart

Whats with the 25k number?, go through all of CMOC's annual...

Red Hawk upgrades Blacksmith with DSO mineral resource at the Eagle Deposit

Capital raisings wrap: Brainchip, Ovanti, Lake and VHM

Monadelphous inks $200M contract with Woodside to help build Pluto LNG – but will it make Scarborough cheaper?

MinRes jumps 5% as the company meets production guidance – depressed iron ore prices be damned

Horizon firms up ore reserve for Boorara ahead of FY25 Q1 development decision

IGO kicks off earn-in copper drilling on-site Encounter's Yeneena play as it adopts new identity

ASX Market Open: ASX200 to rise for Friday session | July 26

Nova locks in NASDAQ US market listing at a value of only US$3.3M as ASX gets quieter and quieter

Nine's staff strike as Paris Olympic coverage begins

Tissue Repairs soars nearly 32% on TGA approval for wound healing gel

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Whats with the 25k number?, go through all of CMOC's annual...

Top Stories

Red Hawk upgrades Blacksmith with DSO mineral resource at the Eagle Deposit

Capital raisings wrap: Brainchip, Ovanti, Lake and VHM

Monadelphous inks $200M contract with Woodside to help build Pluto LNG – but will it make Scarborough cheaper?

MinRes jumps 5% as the company meets production guidance – depressed iron ore prices be damned

Horizon firms up ore reserve for Boorara ahead of FY25 Q1 development decision

IGO kicks off earn-in copper drilling on-site Encounter's Yeneena play as it adopts new identity

ASX Market Open: ASX200 to rise for Friday session | July 26

Nova locks in NASDAQ US market listing at a value of only US$3.3M as ASX gets quieter and quieter

Nine's staff strike as Paris Olympic coverage begins

Tissue Repairs soars nearly 32% on TGA approval for wound healing gel

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News