STTCOMP WWI, FA LONG
West Wits Mining Ltd (WWI)- Market Cap $8.21 million
SOI-456 million Options- 52 million
SP $0.20
Current Cash on hand -$0.8million
EV -$7.4 million
Gold explorer In South AFrica (Soweto Cluster)(WWI 74%) & Indonesia
Jorc Resource of 1.32 mill oz in South AFrica
From website
http://www.westwitsmining.com/
Resources Estimate (under an earlier version of the JORC code) released by DRD to the ASX in 2000 (refer WWI ASX release 28 August 2015).
Importantly the new Mineral Resource Estimate is derived from the historic DRD resource but only includes ounces to a 400m depth from surface and does not include deep underground material previously considered in the DRD estimation. The chosen headline cut-off grade of 2.0 g/t is based on historic figures and should ensure that the bulk of the resources can be reasonably expected to be exploited.
Further info for below refer to recent ASX announcement 24/6/16
An agreement has been reached to remove a 1500m strike length x 30m depth on a stretch of outcrop in Sol Paaljies which will see the first stage of production in South Africa. Capex is a non factor as there are 5 mills in the region that can treat the ore.
This initial removal of ore will add significant cashflow over the next 12 mths (more than current MC) as well put the company firmly in the spotlight for larger international and or local ventures.
FarEast Capital describes the company as an "Asset Realisation Play". Valuing it $0.08 within 12 mths.
My valuation is moderately higher
Please note most of the mining can occur via open pit or shallow underground to 400m with existing mills in place, cheap labor force, low rand value vs the $USD and relatively high gold price.
If this transactions comes into play, WWI will be cash rich as well as sitting on a decent high grade tenement in Indonesia, which to date, has been difficult to progress with a spate of illegal miners hampering there first attempt at alluvial mining.
Current MC is atleast three times under resource value however given the regional location of existing mills is probably six times under valued. This is a project that is ready to go.
Best goldie on ASX under 10 mill cap
Disclosure- Hold
