Next Investors Coverage

While Next Investors have yet to put their WCE analysis for addition to their portfolio on their website below is the summary from the detailed email they sent to subscribers at market open.

	West Coast Silver ASX: WCE
1	And finally, here is our WCE Investment Memo:
2	Investment Memo: West Coast Silver (ASX: WCE)
3	Memo Opened: Friday, 8th August
4	Shares Held: 4,863,000
5	Initial Entry Price: 7.7c
6	What does WCE do?
7	WCE holds 70% of the Elizabeth Hill silver project in WA.
8	Elizabeth Hill was one of Australia’s highest grade silver mines when in production.
9	We are Investing in WCE to see it make repeat high grade discoveries.
10	What is the macro theme behind WCE?
11	Silver serves as both an industrial and a precious metal.
12	As a precious metal, silver is often used as a hedge against inflation, a relevant factor given the persistently high inflation at the time of writing.
13	On the industrial side, silver plays a key role in the production of photovoltaic cells used in solar panels, making it an important material in the global energy transition.
14	Our WCE Big Bet:
15	“WCE re-rates to a market cap of $300M by bringing the Elizabeth Hill mine back online OR making a new discovery that is as big (if not bigger) than Elizabeth Hill into a strong macro silver theme.”
16	NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is no guarantee that our Big Bet will ever come true. There is a lot of work to be done, many risks involved, including development risk, country risk and commodity price risk - just some of which we list in our WCE Investment Memo.
17	Success will require a significant amount of luck. Past performance is not an indicator of future performance.
18	The 9 Reasons We Invested in WCE
19	1.We are bullish silver
20	2.WCE’s project was one of Australia’s highest-grade silver mines
21	3.WCE’s project sits on a granted Mining Lease
22	4.Historic production had cheap, simple processing 5.Near mine exploration upside
23	6.Already hit very high grade silver in the first few drillholes
24	7.WCE has 10 assays pending right now 8.20 regional targets ranked, exploration starting soon 9.Record 145kg native silver nugget came from WCE’s mine
25	What do we want to see WCE do next?
26	Objective 1: Assays from 12-hole drill program
27	WCE just completed its first 12 hole drill program on the project - assays from the next 10 holes are currently pending.
28	Milestones:
29	Assay results from remaining 10 holes
30	Objective 2: Target generation - near Elizabeth Hill mine
31	We want to see WCE do some geochemical sampling and shallow aircore drilling to rank new targets next to the Elizabeth Hill mine.
32	Milestones:
33	Soil Sampling Trenching results Identify drill tagets Permit for further drilling
34	Objective 3: Target generation - regional targets
35	WCE’s project area covers ~180km^2. We want to see WCE run geochemical sampling and geophysics across the broader land package and rank new drill targets.
36	Milestones:
37	Geochemical sampling (soils, trenching) Geophysical surveys Identify drill tagets
38	Objective 4: Second drill program starts
39	We want to see WCE kick off its second round of drilling and have results out to market before the end of the year.
40	Milestones:
41	Drilling permits granted
42	Drilling starts
43	Assay results
44	What are the risks?
45	Exploration risk
46	There is no guarantee that WCE’s upcoming drill programs are successful. WCE may fail to find economic deposits of silver.
47	Funding risk/dilution risk
48	As a pre revenue explorer WCE is dependent on capital markets to fund ongoing drilling and development.
49	Although it recently raised $6M, future exploration may require additional fundraising.
50	That could come at discounted prices and further dilute existing shareholders.
51	Commodity price risk
52	The performance of commodity stocks are often closely linked to the value of the underlying commodities they are seeking to extract. Should silver prices fall, this could hurt the WCE share price.
53	Market risk
54	Broader market sentiment could deteriorate, and shares as an investment class trade lower, taking WCE’s share price with it. Alternatively, there could be further sector specific pain ahead where junior explorers suffer a lot more than the broader market.
55	What is our Investment Strategy?
56	Our plan is to hold the majority of our position in WCE for a minimum of 12 months as part of our Catalyst Hunter exploration portfolio, which we hope is enough time to see WCE drill out its project, make a discovery and the silver price to go on the run we hope it will.
57	We may look to sell up to 20% of our holding if the company delivers on one or more of our Investment Memo objectives and/or the share price materially re-rates in line with our minimum hold conditions.