WPG are in the shadows of commiting to their Peculiar Knob Iron Ore project. With a basket of large advanced large commodity projects behind it, you can be guaranteed this Company is going to be marketed very hard over the coming months.
Once it hits the hungry Funds and Insto's radar's it will move very very quickly.
There are a number of potential events that carry with it the potential to completely re-rate this Company. As an example - Should a suitable working arrangement be reached under the WPA review, then WPG already has the assets to become a $billion dollar Company.
Stock Price: $0.75 Market Cap: $90 million (approximate) Cash: $16 million (estimated)
Project NPV's: $300 million (Veritas Securities valuation)
Near term Iron Ore producer from Peculiar Knob in South Australia. Believed to be the highest grade/lowest impurity undeveloped iron ore resource in Australia
Multiple Bulk Commodity Projects under development in South Australia:
Magnetite-Hematite BIF: Magnetite resource estimate 570 mt @ 36% Fe Hematite resource estimate 102 mt @ 37.4% Fe Additional Magnetite exploration target 790-890 mt @ 32-37% Fe Additional Hematite exploration target 1,400-1,680 mt @ 22-43% Fe
Coal: Early stages of resource drilling Initial exploration target of 500 mt
Peculiar Knob Iron Ore - Key Points Decision to commit to project development expected by the end of 2010 Exports expected to commence in the second half of 2011 MOUs for the sale of some 9 million tonnes of iron ore fines over a 5 year period in place 30 year port access agreement to export iron ore and coal from Port Pirie in place Exports expected be within the range of 3-4 million tonnes per annum of iron ore Port capacity of 7-8 million tonnes per annum provides excess capacity to be made available to other users or production expansion
WPG Price at posting:
74.4¢ Sentiment: Buy Disclosure: Held
