Wti Oil Etc Discussion Threads

[gozo] 14/12/2017 13:25

Added a few on the dip

[leedskier] 14/12/2017 13:14

My guess is order filling, the 10%+ fall being to trip stop losses, but it didn't work.

[mreasygoing] 14/12/2017 13:13

Tree shake very unsuccessful. Very strong buying. We all know this is going much higher in the future.

[x54v] 14/12/2017 12:47

"#WTI Didn't expect that direction today. High volumes & would be surprised if didn't move back up off 1p BID backtest. Let's see."

[leedskier] 14/12/2017 12:31

Some serious buying following the unsuccessful tree shake. makes one wonder where the MM are sourcing all these shares.

[x54v] 14/12/2017 09:33

Monthly chart. Definite uptrend starting.

[dixi] 14/12/2017 09:20

WTI were not the only company after the asset either. Others will have seen the value here too.

[mattjos] 14/12/2017 08:53

They were a forced seller Augustus ... read the news flow from Intrepid and you will see why. Very fortuitous for us

[x54v] 14/12/2017 08:33

Chart looking really good here and breaking out from the flat base.

[augustusgloop] 13/12/2017 23:41

If the asset was genuinely that valuable - why didn't they sell it for more - to a miner that has a few billions in the bank?

[dixi] 13/12/2017 22:36

Yes, for any aggrieved Intrepid shareholder wanting a decent return from the asset coming to fruition - buy WTI, knowing it now has a considerably greater chance of happening.

[mattjos] 13/12/2017 22:25

Despite the history of the company, I am not really struggling to understand why this is not now worth circa 2 - 2.5p per share.Maybe we'll need the Intrepid shareholder vote to go through before we get there. Realistically & despite the worth of the asset, Intrepid lack the firepower to take it any further forward. They've done wonders as it is!... to try to go further from here would have bankrupted them & the BOD there know it. The auditors report on the carrying value has forced them to sell or lose their ASX listing.Katumba is a very, very significant mid-tier asset. No point trying pass it on to another penniless explorer.It may well appear a stretch for Weatherly but, we do have an extremely well-funded investor / financier in the form of Orion & there is no way this does not have their full sanction. Frankly, this is an absolute bloody steal. Keep buying, imo ... if I were an Intrepid shareholder I certainly would be.

[x54v] 13/12/2017 10:28

"#WTI Many won't have noted the production volume, high grade & ebitda metrics that can be unlocked from the acquisition. This is exceptional for shareholders. Factoring in Tschudi also, you're looking at a copper business selling over 50,000 tonnes of Copper cathode p/a."

[rambutan2] 13/12/2017 04:56

So, we're back in Zambia. Hopefully we'll have more luck than we did the first time around when Beny Steinmetz assisted by (no doubt well paid) govt officials, put a halt to the plans.

[augustusgloop] 12/12/2017 22:04

pedro57,

I can't value the company.

Orion have a greater knowledge than anyone on here - they value it at zero.

It they though that the company assets were worth more than the loans -- they would take the company.

But they just let it continue - in the hope that a strengthening copper price will let them recoup their loans.

[mattjos] 12/12/2017 22:03

Shareholders all livid on the hot copper B.B. for Intrepid mines. One good poster though has offered this thoughtful analysis:Dragone64,I don't think this board are really the mining exploration, mine development types, more just cash strippers.What was Miller's average "buy in" price? You seem to think it is higher than he will recover if the company is wound up. I'd need to go back and do the sums to check but I'd be surprised if he would agree to this sale if he is going to take an overall loss. On the other hand maybe he didn't understand what he was getting into.The early feasibility study showed that the project had a complex flow sheet requiring a copper leaching process comprised of crushing, grinding, flotation, pressure oxidation, atmospheric acid leaching and solvent extraction / electrowinning. The mine by necessity would have produced a copper cathode product through this complex process not a copper concentrate. The early study also needed to build in overcapacity to deal with the problem of an early shortage of sulphide product which would have produced the necessary acid and heat required for the acid leaching operation. What's more, in this plan the mine would have needed to obtain external sulphide concentrate to process in the early years (average of 40ktpa for the first 5 years). All this amounts to a large capital cost barrier for development. $US680 million from that early study was estimated.When they stopped funding the last feasibility study they effectively gave up on finding other less capital intensive pathways for the project. The company buying this asset must clearly have some idea of how to develop it or they are pay $5 million for the call option on the copper in the ground. To me this call option is still very cheap at this price irrespective of the technical difficulties and the capital associated with the development of Kitumba. The share price of IAU valued the call at ZERO and also values this transaction at ZERO. That's the markets for you at the moment. If prices are not driven unbridled stupidity they languish below cash and asset backings. Who would want to consider serious investments when you can be swept upwards by the trending frothy bubbles (crypto currencies, the FANGs, technology metals you name it).I believe the directors have made a miscalculation and are better to be holding this call option on behalf of shareholders for that price.What we don't really know is what is happening behind the scenes in Zambia. The government there might not fully understand the technical and financial difficulties associated with developing this project and might be applying pressure on the company, even threating to forfeit IAU's rights for all we know.The acquirer might also be miscalculating the situation or it might be more accustomed and more nimble when operating in the African context. They probably see the country risk as manageable and think they can find a way to develop the project or at least flip the project at a good profit at a later point by maybe adding value through a new approach to doing feasibility.Eshmun

[mattjos] 12/12/2017 21:27

Most unlikely Gozo!

[pedro57] 12/12/2017 21:11

Has anybody attempted valuing WTI? At current copper prices I am getting 20p value for Tschudi and using NPV for Kitumba would add another 10p. As I stated on LSE today Tschudi issues seem to be in the past and I'm wondering if we will not hit a C1 cost of

[gozo] 12/12/2017 20:40

Flipping heck Mattjos you'll be sending him a Christmas card at this rate!

[mattjos] 12/12/2017 19:45

AUS$5.75 in total for the acreage with mining licence, environmental permit and onsite camp after over $30m spent on exploration by previous owners to prove up a JORC reserve.Appears a terrific deal & hardly surprising Orion are backing it financially.Given the Australia location, I wonder if Webster was the conduit?Anyway, quite part from the obvious, this will certainly put WTI on the radar of larger mining entities who will also be looking for acquisitions.

[euclid5] 12/12/2017 16:14

Mattjos, thanks for the link:

Updated PFS results and reserves, results incl. post-tax IRR of 15%, NPV (8%) of US$164M

[augustusgloop] 12/12/2017 16:06

Not seeing how a company that can't even afford to pay their present loans, buying another company that will need tens of $millions investment - is a good thing.

WTI have been spectacularly incapable of generating any cash flow from their supposedly great assets - so why should they be able to generate cash flow from assets that other people couldn't make money out of?

[mreasygoing] 12/12/2017 15:56

Highest volume in a year.