W Resources Share Discussion Threads

[marvelman] 14/2/2018 09:18

Agree with all above..moved to fast probably on the Proactive article and the last RNS. Sold at 65 being happy with a substantial profit although I am sure there is more upside and would be happy to trade back in if the opportunity presents itself.

[denjon] 14/2/2018 09:04

This surge may be getting out of hand, unless a proper revaluation is now underway. Just a bit scary finding myself sitting on a very decent profit...at last!Happy Days!

[falia] 14/2/2018 08:28

1p very soon

[tyranosaurus] 14/2/2018 08:15

.66 to .67
I`m liking this, but maybe moving too fast.

[rodrod1] 14/2/2018 08:05

Very interesting Duca :)

[ducatiman] 13/2/2018 20:43

Interesting rise. Tomorrow will be interesting. GLA, duc.

[luckyvince] 13/2/2018 17:39

The share hub has a target of 1.8 for wres this year. I cant remember all the details but will post when i find them.

[barony] 13/2/2018 16:33

I hope/expect wres to do very well, but why the huge jump right now?

[denjon] 13/2/2018 12:53

It's a real joy to have broken through the .5p barrier; .6p looks achievable this week and the 5 yr chart is indicating the possibility of lot more to come, but is obviously news dependent. Undervalued? I would say so but then I would say that wouldn't I...!!!

[rodrod1] 13/2/2018 10:27

Decent volume and tight spread. Augers well for next RNS

[luckyvince] 12/2/2018 18:24

Yep, its a good post. Makes me feel like buying more.

[riviera1069] 12/2/2018 14:26

Rodrod1You should post more often if you can initiate a 5% surge everytime

[rodrod1] 12/2/2018 11:27

From Proactive this morning

W Resources well on the way to building the largest tungsten mine in Europe
09:44 12 Feb 2018
La Parrilla's internal rate of return rings in at a chunky 64%, and that's before commodity upside is taken into account
tungsten periodic table
INVESTMENT
OVERVIEW: WRES
THE BIG
PICTURE
The tungsten price has strengthened in the past 12 months
W Resources PLC (LON:WRES) has a broad portfolio across the Iberian peninsular. It has three tungsten projects, La Parrilla in Spain, and Régua and Tarouca in Portugal. In addition, the company holds the CAA Portalegre gold-copper project in Portugal and the Monforte-Tinoca copper project, also in Portugal.

W Resources now has a US$35mln loan in place to help fund the development of the La Parrilla tungsten project in Portugal. This loan started out as a US$30mln facility in December 2017, but was extended early in 2018 as due diligence conducted by the US Special Situations fund that will be the lender provided increased confidence.

Meanwhile, in January, a contractor was appointed to undertake the construction of the concentrator at La Parrilla at a cost of €8mln. “All major plant components are now contracted and aligned with the term financing,” said W Resources chairman Michael Masterman at the time.

Large resource base to work off
The project’s established resource amounts to 49mln tonnes of ore grading 998 parts per million (ppm) tungsten trioxide (WO3), with reserves ringing in at 29.8mln tonnes at 931 ppm tungsten.

Plans in place to produce an initial 2,700 tonnes of tungsten concentrate per year
According to a final investment decision, approved by the board of W Resources in August of 2017, the plan for La Parrilla involves a two-stage development.

The first stage will involve the construction of an operation capable of processing two million tonnes of run of mine ore to produce 2,700 tonnes of tungsten (WO3) concentrate per year.

Second stage ramp up to 4,000 tonnes per year envisaged after two years
The plan is then to recycle some of the new cashflow into the expansion of the project such that processing capability rises to 3.5mln tonnes per year and production hits 4,000 tonnes of tungsten concentrate.

The increase is expected to kick in in the third year of production, with a rise in processing to 3.2mln tonnes, and the full boost to 3.5mln tonnes expected in the fourth year of operations.

Significant margins on offer
When the board of W Resources took its final investment decision to move forward with La Parrilla in the late summer of 2017, it used certain pricing assumptions for the commodities involved, in particular tungsten, at between US$240 and US$325 per metric tonne unit (mtu), and tin, at between US$18,000 and US$20,000 per tonne.

Using those assumptions, the project looks set to generate an after-tax internal rate of return of 64%.

However, over the past 12 months the tungsten price has been on a significant upward trajectory, and cash ask tin is well above US$20,000. So returns could be higher even than envisaged in the final investment decision.

As it stands, the project is expected to have an EBITDA margin of 57%, to offer payback within two years, and to generate nearly US$30mln in EBITDA per year on average over the current six year mine life.

Shares are well supported by interested parties, dilution kept to a minimum
Chairman Michael Masterman speaks for more than 17% of the shares overall, and is the largest shareholder, so his interests are directly aligned with all other shareholders on the register. As a result, investors can be assured that dilution will be kept to a minimum, and the way development at La Parrilla has been financed almost exclusively by loans is a testament to that.

[denjon] 08/2/2018 12:55

The battle line of .50 seems to be under way!

[bscuit] 07/2/2018 15:08

Now accelerating 2x2M at same time, just after mine @.49 the spread moved to .47/.5.

and I still have warrants.....

[luckyvince] 07/2/2018 14:24

Was that just a 5 mil buy

[luckyvince] 07/2/2018 14:23

The EU will fall apart i am sure. It may turn into a superstate with Germany, Belgium and maybe 1 or 2 others. I read Greece has a think tank in America looking at useing the dollar as a currency should the Euro fail or they decide on Grexit.

[marvelman] 07/2/2018 14:13

Totally agree ducatiman. However when Corbyn gets in as he is likely to do and gives school kids of 16 the vote in another referendum we will surely have to live with the consequences of being stuck in it for our lifetimes.

[ducatiman] 07/2/2018 13:59

EU is finished, a failed experiment.

[edgein] 07/2/2018 13:52

Den,

All this apparent worry that we hear about on the BBC, lack of investment due to uncertainty etc. Strangely enough the £1 is back pretty much were it was against the $1 pre vote and the UK economy is growing and unemployment is at record lows. I voted remain, but now think Brexit is probably one of the best things to happen in years. Europe isn't gonna shoot itself in the foot no matter how much noise they make in the mean time, they'll want a good deal too. UK is one of their largest consumers, deals with USA, China and India will more than make up for any negatives imo.

Regards,
Ed.

[denjon] 07/2/2018 13:10

EdPerhaps we need him to sort out Brexit log jam!Looks like we might be through the .50 barrier soon. Cheers!

[edgein] 07/2/2018 12:54

Den,

Looks like the DOW had a strong recovery last night. A bit of a storm in a teacup, even those dodgy cryptos coming back again. A little rise in US interest rates won't stop Mr Trump making America great again. The man is doing wonders for the US economy with his tax cuts and putting the US first, economy and commodities booming as a result.

Regards,
Ed.

[denjon] 06/2/2018 09:18

With the Dow down 1,175 points yesterday in addition to large fall last week, all markets and shares will continue to be affected. Unless you have already sold it's just a matter of taking a longer term view, if you can that is, and have not borrowed to buy.

[rodrod1] 04/2/2018 15:54

Cyber...... WRES has a substantial unexplored licence area at La Parrilla. It also has Registered over the border in Portugal. In addition it has a gold resource etc.
WRES was producing top grade concentrate for its customers who in negotiations for off take agreements.
So the Capex here is to expand production capacity and maximise the recovery of material on a low cost basis.
The result is that Wres will be very cash generative once the new equipment is online.
MM has an enormous investment here. He is in it for the long haul, rather than a sale. The profits will be used to prove up further resources across the portfolio.
DYOR

[marvelman] 03/2/2018 12:27

Cyber

Good to see you taking an interest here. There is currently no debt in the company as it has had a series of equity fundings to get to this stage. As you have observed, the great advantages the company has are its low operating costs,access to existing infrastructure and its politically safe position outside of China....there are other advantages. I have been in and out of these for a couple of years having exited each time Masterman has pulled off a fund raising with a cheap deal for himself and followers. However, it all seems to have finally come together and I bought in again last week with an initial foray and will add as funds are available...regards