Below is not financial advice and my personal interpretation only:
UBS reviewed the quarterly yesterday:
They were surprised by recent cashflow. Their estimate was $125m when WSA produced $144m. Albeit, helped by a timing shipment. UBS have estimated that nickel will drop below $6 lb in the second half of 2019.
This goes completely against recent price action.
UBS estimate WSA production costs are $4.60lb. To think two weeks ago, nickel was $5.50lb but now today - $6.70lb.
The cashflow was excellent last quarter. If nickel can maintain this price rise or go higher, obviously WSA is incredibly leveraged and may have caught fundies on the hop.
WSA Price at posting:
$2.37 Sentiment: Buy Disclosure: Held
