Hi Spec,The most likely scenario is a Big Springs JV based on...

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Joelstar

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14/04/24

12:05

Post #: 73335630
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Originally posted by speculator101: ↑

Hey Joel,
it does indeed seem like there has been a general re-rate across most explorers (though of course vary varied as to the % gains). Some have almost doubled from their lows only a few months ago. In saying that, volumes are still pretty low across the sector, so the moves have been quite pronounced, there is hopefully still a lot more to come.

As for First Majestic, great pickup!
Not like they don't have the financial capability to take Big Sprints of WA8s hands. I don't see Toll treatment as a great option for WA8 as it would still be quite a way off any sort of cashflow (though I could understand it might be more profitable over the longer term).

Perhaps the large increase in POG in USD will further assist any deal.

I still view most explorers that hope to actually develop a stand alone project as the least attractive, as... most producers in W.A don't want to build new mines, just bolster their current operations (WA8 does seem to have both options available to them, which as I keep looking across the sector, is rare).

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Hi Spec,

The most likely scenario is a Big Springs JV based on explorations and development hurdles.

Just spit balling here.
Maybe a free carry to FID split 75/25 with a 2.5% NSR with option to buy back 1.5% of NSR at market value.

I'm 100% certain that Big Springs now has a giant bullseye on its back.
A distance of 20km to mill is peanuts when it comes to haulage costs.
I'm expecting a deal to be imminent.
Any acquirer will be incentivised to act fast now that a nearby toll treating option is provided for Big Springs.
I believe a favourable deal could cause a significant re-rate.

Sometimes it's not what you know it's who you know.
Steve McMillan is still an active member of the Warriedar team (now working on a contractor basis).
Steve has intimate knowledge of the Jerritt Canyon Mine having previously worked at JC as chief mine geologist.

WA8 Price at posting: 4.7¢ Sentiment: Buy Disclosure: Held
13 Upvote

8 Great analysis

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