W Resources Share Discussion Threads

[cyberbub] 03/2/2018 11:32

Aha, been doing a bit more info digging.

Looks like WRES' mine already had quite a bit of infrastructure in place, hence the lower capital cost.

However it looks like WRES has a largely fixed resource, whereas the resource at ORM is still amenable to substantial further expansion?

[cyberbub] 03/2/2018 10:57

I might add that ORM's market cap is a little below WRES, but ORM only has 30% of its project. If it was 100% then the market cap of ORM might be twice that of WRES. Does that imply that WRES should double from here just to catch up with ORM?

Thanks again.

[cyberbub] 03/2/2018 10:54

The similarities to ORM are striking. Similar target output of tungsten concentrate, similar production cost per mtu.The difference is ORM needed a $100M fundraise to build their mine but WRES only needs $35M? Any explanation? ORM's fundraise seems to cover a wider range of outgoings including exploration, cost overruns etc. But even so. Is WRES going to need to raise more money, possibly through equity? It's unusual to get a 100%-debt fundraise for a miner.Thanks again.

[rodrod1] 03/2/2018 07:35

I fully concur with your figures cyberbub.a share price of 4p within 2 years

[cyberbub] 03/2/2018 00:38

Looking in here again...Is there a broker price target for the company when in full production, assuming it's still at 5bn shares and tungsten at $300/mtu?If they are targeting 2700 tons p.a. that is 2.7M kilograms. Divided by 10 is 270,000 MTU. Taking a production cost of say $100 and sale price of $300 means $200 gross profit per ton. 270,000 X $20000 = $54M gross profit p.a. Of course there will be ongoing maintenance costs, resource drilling, repayments on the big loan, central G&A, taxes etc etc. But surely a net profit of $20M p.a. would be reasonable. On a relatively modest miner p/e of 10 that would be a $200M market cap. But at 0.45p the market cap is only $30M?Am I missing something?

[denjon] 02/2/2018 13:46

Spread widening now .44 - .48. MM's not being generous to sellers who seem to be thin on the ground today. Perhaps they are holding a lot of stock and don't want to add more. Buying has been steady as we creep snail like towards .5p hurdle!

[denjon] 01/2/2018 18:02

Local government bureaucracy in Spain moves very, very slowly. Patience is essential but the potential reward, if forthcoming, will be worth the wait.

[marvelman] 01/2/2018 16:50

Thanks idandy...skim read that and missed it...

[idandy] 01/2/2018 16:45

RNS 17/05/17

Following the completion of the plant and facilities, and on meeting the target employment levels outlined in the application, IRS will submit a request for the Grant pay-out to the Junta de Extremadura Government. The Government will then verify fulfilment of all conditions in an audit, and the Grant will be paid to IRS upon satisfactory completion.

Success in the Grant application would provide many benefits to W and the La Parrilla project including:

- Strong alignment and support of the regional government for the project

- Receipt of funds in the critical commissioning period

- Potential for early repayment of project debt at that time

[marvelman] 01/2/2018 15:41

idandy...who said that?...I believe it was a poster on this BB but I havn't seen that officially RNS'd unless I missed it...the EU grant is actually quite substantive to the company although not immediately vital to the build plans or going forward into production.

[idandy] 01/2/2018 15:06

why are people focusing on the eu grant - he said a while back that it could only be paid once the business was up and running and more importantly employing local people

[edgein] 01/2/2018 14:04

Paddy,

Yup looks like fully funded to the tune of $35m with the first tranche to be received any day now. Construction will start pretty much straight away and will take approximately 12 months, prehaps a little less. Previous guidance was that production startup will be Q4 18. Start up is for 2Mt pa of ore mined ramping up to 3.5Mtp over a couple of years so its a pretty substantial operation that they're being funded for. 2700tn pa to 4000tn pa of tungsten concentrate will put it to one of the largest tungsten mines outside of China and the largest in Europe. Incredibly its only capped at around £25m and some are predicting significant strengthening of the tungsten price to come. If China clamps down hard on exports the European APT price will rocket.

Regards,
Ed.

[rodrod1] 01/2/2018 10:59

I anticipate 2nd qtr 2018, first half this year. But we await guidance from MM on that. Bank the first drawdown and then he can tell us.

[paddyfool] 01/2/2018 10:48

Well we now have a fully funded programme, can anyone shine a light on when production will start?

[rodrod1] 01/2/2018 10:47

EU Grants is a red herring. They would have to issue RNS if they had been determined.

In any case, WRES loan funding will enable production up to 2500 tpa. With the price of Tungsten set to grow further, the economics are superb.

[keisersoze] 01/2/2018 10:01

I think this is very good news. I'll be even happier when the ink has dried on the contract and the money's in the bank.

[edgein] 01/2/2018 08:17

Marvelman,

No worries, They've talked about this funding for months and delivered the funding required. You'll be able to find other companies to invest in there's plenty of others out there that require funding, lots of under-valued miners about. Something that Mr Masterman has been able to do for WRES and its remaining shareholders, first $13m to be received in early Feb and construction to follow shortly. With costs estimated at around the lowest globally (around $90/MTU) and tungsten still around $300/MTU its a future cash cow when they get it built. $35m put to good use.

Regards,
Ed.

[marvelman] 01/2/2018 08:07

Edgein. I agree with you regarding the potential of the business model...just cannot trust Masterman and his constant surprises which are usually to the advantage of him and his friends but not to the rest of us....best watched for now methinks...regards.

[sleveen] 01/2/2018 08:06

marvelman

Exactly what I though:no EU grants

[edgein] 01/2/2018 07:59

Marvelman, envy of most AIM companies, fully funded to develop this mine through this loan agreement. Almost every smallcap fund their development through debt unless they sell a large %. WRES have secured this funding from the US because tungsten is a critical metal and the US knows it. They're gonna be taking about 4-5% of global tungsten supply away from China.

Regards,
Ed.

[edgein] 01/2/2018 07:55

FSA watcher you'll find that the first payment of $13m + the second payment of $22m equals a total of $35m! I guess the size and quality of the asset meant they were able to ask for more and get it. No placing required, they're targeting early feb for receipt of the first $13m! Wow that's a good smack of their current tiny market cap. You wouldn't think they're about to develop Europe's largest tungsten mine given the serious under-valuation by the market.

Regards,
Ed.

[edgein] 01/2/2018 07:52

Funding sorted, first tranche to be drawn in early Feb with the remainder to be drawn in Q2 once the conditions have been met. So they're pretty much fully funded to develop Europe's largest tungsten mine. No wonder they were organising those construction deals for the mine.

Regards,
Ed.

[fsawatcher] 01/2/2018 07:49

why they now need $35?

i fink the $5 gonna come from equity and go to loan people

wot $5m at 0.3p dilution???

i fink someone alreadies sell the equity at 0.52p coz they know they got stock comin

loan company in drivin seat innit

[marvelman] 25/1/2018 18:31

Good points Photon