Look at the bigger picture;
My desktop audit on the company is as follows.
Also, note there are 3 individual shareholders who own at least 38% of the company
I have interviewed 1 of the 3.
All have deep pockets.
Commiserations to anyone who would sell <A$0.35 cents as this is the in situ value per share assuming WRM would sell all projects at A$10/Oz Au Eq.
As the chairperson said to me in a meeting last year when I asked him why he would join such a small junior developer come producer...
He said "the value of Gold and other metals is increasing over time [considering a 20-30 yr period] and so too the in situ value.
What I like about Simon Finnis and also the new chairperson Mr Peter Mangano as Non-Executive Chairperson following the retirement of Mr Peter Lester is the fact they have skin in the game i.e. they are buying shares @ 7 cents.
Further, McNally keeps buying more stock and exercising his options.
A lot of comments focus on the price of the stock going down, but then there was a lot of excitement and false expectations surrounding Red Mountain and Last Chance and White Gold in Alaska by US-based investors including Crescat.
In my view it is a smart play to leave Alaska alone, it's USD$6B in situ. WRM does not have the cash flow to develop this asset.
They have >5 mid-larger "Kinross" type companies in their dataroom. A JV is a no-brainer, but at US$300,000 per annum to renew the tenure on Red Mountain that is a small price to pay for an asset that keeps increasing in value.
Also, a 1 season drill would cost USD$5M as they would need helicopter support.
There is Gold in the WRM EL, ML at Morning Star, and also Rose of Denmark and Wallaby.
To drive to the EL area including seeing drilling at Wallaby it is 3hrs from Melbourne.
Why do WRM have 25 staff members working at these mining areas, to attract investment?
They have performed 18 months of mine planning to mine the higher grade veins first and work backward from level 4 back to the ground and then levels 9 upwards.
So,my understanding is there is 1,300Oz Au in Mc Nally reef which will be mined overthe next 6-8 weeks. Revenueapprox. A$3M from McNally's this quarter plus any previously mined andprocessed host diorite. StonesReef is lower grade, thicker reef but easier to process due to primarily beingquartz.
Dickenson reef is unknown on Au content.
It is a quartz vein reef underground mine. Compiling a JORC report when considering that some of these reefs interconnect, expand and the contract is difficult. You are diamond drilling into rock, not light sands at 0.1g/t in the Western Australian "Sand Pit".
The fact that three persons who are high net wealth individuals keep buying stock directly from the company (i.e. they actually are sophisticated investors) means that you have three persons who have financial and investment advice to invest in WRM.
Personally, I do not care if the price falls to 5 cents or 4 cents, I will just buy more stock as per the major shareholders.
WRM is in the business of developing its assets which takes time, money/ funding, and strategic planning.
Again AISC is unknown. The JORC on the MS and ROD are unknown.
The last 3 companies tried and failed to turn a profit.
Who were their managing directors and also their expertise?
So let's entertain everyone who has been posting lately WRM run out of money. They sell a share in Alaska which is worth USD$6B in situ.
Red Mountain VMS ProjectTotal contained metal is impressive with 822,000t zinc (Zn), 334,000t lead (Pb), 60.9 million ounces silver (Ag), and 442,000 ounces gold (Au). This can also be expressed as 1.8Mt of contained zinc equivalent or 269Moz of contained silver equivalent.
So that is 3,243,243 Oz Au Eq.
It is normally a USD$50/Oz min to find the Gold, but lets say administrators sell out at USD$10/Oz...
At USD$10/Oz bare bones sale USD$32,432,432 divided by shares on issue = 270,763,820 = USD0.1197 or AUD$0.1770/ share capital return to shareholders. At USD$50/Oz in ground you have A$0.887.
What about Mt Carrington? Again, an independent valuation has already priced the stock's assets at worse at AUD$0.42/ share, with current book value more like $0.35.
See no matter which way you catastrophize WRM any administrator would return more to shareholders at mates rates sales figures.
Reminds me of a friend. His tenant stopped paying his commercial lease during CoVid. Bank would not lend money. So he just sold the building for A$6M, and realized a $A5.5M profit over 30 years.
WRM has real estate that is wanted by the "Kinross' " of this world.
Then I might be wrong, perhaps no one wants Red Mountain Last Chance???
So all you that are catastrophizing WRM will go to 5 cents then 3 cents, great sell your shares to me at 5 cents and 3 cents, nothing like buying gold real estate at pennies in the dollar returns.
The opinions I have expressed are solely my own. These are my opinions and any information or facts/ figures I have presented do not and must not constitute financial advice and or be misconstrued as such. Any forward statements I have made on Oz mined are purely speculative.
1 Woods Point ML, and surrounding EL; Rose of
Denmark, Wallaby etcAU/Oz A,550 2 1. Size (Oz) 1,000,000 3 2. Location Australia 4 3. Local Issues Environmental - no use of cyanide as per A1 mine (KAU) 5 4. All In Cost per Oz Au $2,200,000/ Qtr (Admin, Staff, Production, etc costs) 6 5. Break Even Oz Mined/ Qtr (based on item 4) 80Oz, or 4000Oz/ annum (excluding 2 weeks public holidays and Christmas - NY period) 7 6. Target 2023Q1 = 1,500 Oz (6,000Oz in 2023-24) 1500 8 7. Avg Spot Au Last Qtr AUD$ $2,550 9 8. Cash Cost/ Oz $1,466.67 10 11 9. Recovery Rate 90%, then they send it to Gekko Labs in Ballarat for further processing. 12 10. Average Head Grade (g/t Au) 11 13 11. Recovered Grade (g/t) 9.9 14 12. Ownership 100% WRM 15 13. Type of Reserve/ Resource Quartz Dyke Diorite, Pyrite present as well 16 14. Cashflow Est. 2023 Q1 $1,625,000 17 15. Current Liabilities $300,000 18 16. Debt = Debt - Cash (Current $300,000) -$1,325,000 19 17. Debt Coverage (Cashflow / Debt) 5.42 20 18. Market Capitalisation (AUD$) (MC) $16,000,000 21 18b. Fully Diluted Shares 270,000,000 22 19a. Resource Oz Victoria (WP, Rose, Wallaby) $510,000,000 23 19b. Resource Oz Mt Carrington NSW $661,764,706 24 19c. Resource Oz Alaska $7,794,117,647 25 19d. Resource Oz - Ag Equivalent Mt Carrington 25M Oz 26 20. Total Global Resource Value Resources $10,510,441,176 27 21. Mkt Cap., Valuation Per Resource Ounce $0.0015 28 22. Resource Oz/ Shares Outstanding 1.59 29 23. Value Resource Oz/ Share Outstanding $46.71 30 24. Resource Valuation as a % of Market Cap 0.15% 31 25. Value of Resources Market Cap. (MC) $1,051,044,118 32 26. Revaluation of share price $4.67 33 27. Net Profit/ Share (Woods Point Only) $0.029 34
