Lots of possible scenarios to consider. I would expect Vault to keep an eye on WA8 as a matter of course, and for them to evaluate a possible acquisition at the right time. With a market cap over $3b, they have the capacity, and funds would be available if the business case met their IRR hurdles and they could justify including it with their KOTH and other strategies. Vault is a gold company, WA8 is a gold company with significant antimony benefits, so that would be a good fit. WA8 gold resources are not yet big enough (IMO) to justify a speculative acquisition (1m oz is about the same as Deflector resources), but later this year, with an updated MRE, they could become irresistible. Deflector has enough ore to go into 2027 according to their recent presentation, so the decision on its future is not yet critical.
Of course the reverse of that is also being planned over at MM8, who are planning to acquire the IGO Cosmos Nickel mill 160km away - IGO have not demonstrated any desire to process gold (Not sure I understand why, but there it is). Viewed from the IGO side, it appears that the goal is to avoid rehabilitation costs of some $50m and maybe the C&M as well - rather than find another use for the mill. MM8 is not far from the same market value as Warriedar, so maybe Vault might also look for an off ramp against potential rehabilitation costs on closure. I am sure that WA8 shareholders would strongly support acquiring Deflector, if it brings forward production and the price is right.
And then there is the potential for Tolling as well - and that would seem to be a very easy path to production.
WA8 Price at posting:
10.8¢ Sentiment: None Disclosure: Held
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