Report from Vancouver Junior Mining Conference by Dr. Airtime in IV Board.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=96116711
Mawson West (MWE.TO)
- Dirt cheap high-grade copper miner in Congo that others on this board have looked at and has been a pick of some in PSL 23 & 24 last year. $96M MC, $48M of internally generated cash and $7.5M debt which represents the last principal payment on their bank debt facility due soon. $54M EV.
- Congo = country risk of course.
- Dikulshi mine has been source of cash flow to date. Open pit ore is now exhausted and they are transitioning to underground. Per IR, 2014 will see a cash flow drop as they transition, but the story here is the next Kapulo mine which will be operating in H2-2014.
- Kapulo has $125 in capex and $75M has been spent to date with $50M remaining. It sounded like they will not commit their $48M in cash balance but will easily be able to renew their bank debt with current lender as they will be in good standing when it is retired in a couple months (last $7.5M principal payment above). Likely to draw another $50M in bank debt. Dividend is then a possibility when Kapulo is running.
- Kapulo has a 6year mine life with P&P reserves. Likely to come in at 8 year when all is said and done. The 6 years of P&P reserves are only on the Shaba deposit but they have a another open pit target with M&I resources 6km from the Shaba mill that will increase it to AT LEAST 8 YEARS.
- Lots of risk in Congo so Mawson won’t get 1.0X NAV but per the Kapulo feasibility, the project’s pre-tax NPV10% was $157M but that was assuming $69M in Capex while the spend will come in at $125M. See feasibility release below
http://www.mawsonwest.com.au/IRM/Company/ShowPage.aspx/PDFs/927-36085522/PresentationKapulo...
- Not sure what to make of capex overrun. IR said that they overbuilt the mill substantially.
- Top 40 shareholders own 80% of Mawson West per IR
- Forums
- ASX - By Stock
- MWE
- report from vancouver junior mining conference
MWE
mawson west ltd
report from vancouver junior mining conference
Featured News
Add MWE (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
INF
INFINITY LITHIUM CORPORATION LIMITED
Ryan Parkin, Managing Director & CEO
Ryan Parkin
Managing Director & CEO
Previous Video
Next Video
SPONSORED BY The Market Online