underperformance

WSA has really struggled to perform the past two months that could be attributed to the nickel price, but that's far too easy.
It seems all the good news has been factored in for the short-term and corporate shennanigans hasn't really helped the stock. A market capitalisation at $800 million odd would look cheap in some eyes.

SO what's there to look forward to?

T5 & T6 are factored in.. T7 probably not, drilling has yet to resume for testing I believe.

Spotted Quoll has been factored in for the forseeable future - market already aware of its outcome but future drill results have not.

There is no real buying demand and sellers are getting impatient approx 800.000 shares have been reported as short sold on top.

A new offtake agreement..could get it moving..

Junchuan or BHP to make a take over bid - unlikely.

September Q should be very good but that won't be released for at least another 3-4 weeks. Revenue from BHP offtake agreements, effects of Cosmic Boy, refunds for Flying Fox capital cost + 20% management fee for the development of Lounge Lizard with a $20 million access fee on top. This is serious money.

I don't think this will be enough to offset any future decline in nickel prices, although the decline on Ni on the LME has been 20% as opposed to the decline of WSA of 26% which is in-line with MRE and PAN .

This company is historically so good at reaping out winners out of its orrifice. In fact nickel isn't looking to badly at all but it is underperforming if we look at price action only as critical support was broken today.

So what other projects are in the pipe line and what rabbit could be sprung out of the hat?

Diggers South - on care and maintenance.
Lake King - Drilling started; follow up on a recent diamond drilling program, company claims no recent nickel exploration has taken place there. Potential and nothing more. Drilling program for Lake King and its program dates are obscure and one would have thought results would have been out by now. Perhaps they are poor and put on a backburner we shall wait and see in October.
Sandstone - RAB/RC drilling program will commence this quater - one month of three already gone. Potential for copper and gold. Not holding my breath.
Mt Finnerty - not much happening here, wait and see.
East Bull Lake - Fairly substantial program has taken place here with some healthy primary results, evaluation is in progress.

Financials should be much better this quater, hedging makes sense and is at 76c AUD very clever move and should get more bang for their buck with the Jinchuan offtake agreement not so with BHP..

All in all, it seems the company is in very good shape despite the share price underperformance in comparison with its peers. What will get the share price moving again? Awesome results from SQ and awsome results from one of their growth projects the evaluation results for East Bull Lake looks positive and an opportunity for a PGM mine in Canada. Drilling program at Lake King has commenced and results should have been out by now, one thinks.

I will re-evaluate this company in one month time and shall continue to accumulate on every dip.

Good luck to all holders.