Market Cap $53.5m @ 7.8c, diluted Mcap $58.5m, Cash estimated at $10m, EV $43.5m, Diluted EV $48.5m (-2.5m option cash).
Tipping this one again, was unsuccessful last time.
Catalyst: Potential for positive information to be released in investor presentation when MD speaks at 121 Mining Investment HK Conference (19 - 20 Oct), and the associated investor interest. TYX who are exploring for gold in a JV with WPG also presenting. Thanks to FullMoonFever for the heads up about the conference. AGM is on Thursday this week which could also see some news on current production and expected costs.
From a FA perspective if WPG make the transition from developer to producer without too many issues then based on producing peers with similar sized resources it is undervalued. Most of the decent ones have market caps above 100m. WPG now fully own Challenger and have been pouring since May, 50koz target production from Challenger and 20koz from Tarcoola once developed later this year.
Other tidbits:
MD Bob has done it before. He developed an Iron Ore asset and sold it at the peak of the cycle then gave the money back to shareholders.
Someone keeps exercising options that are ever so slightly out of the money. I am guessing this is for tax planning purposes? Or they want to increase the company’s cash though the company have stated they are fully funded after the last raise.
The share price didn’t retrace to the last raising price.
TYX are currently running an extensive drilling program including the JV tenements.
Considerations:
Gold price
AISC for Challenger is not known, I believe KCN were somewhere running around 1300 in the last info they released
Potential limited mine life and/or Challenger becoming uneconomical
Of WPG’s 960koz total estimated resource 580koz is at Tunkilla which there are no immediate plans for due to low grade
They will have to spend 4m developing Tarcoola (they should be fine to fund this, at a guess they might end up with a combined AISC of ~1200)
