Sep. 12 at 12:07 PM
$WRLGF
@LarryLink
I was watching the sell-off yesterday afternoon and was thinking
$0.75 is probably the new support for WRLGF.
But
$0.75 is ridiculous.
WRLGF is producing gold and ramping up production. August September October should all be minimum 650 tons per day. Gold is
$3650 per ounce.
Presentation says the hoist and ropes for the shaft should arrive in September. Once the shaft is operational for this first phase they can skip 350 to 400 tons per day just from the shaft. The ramp-up is in progress.
$0.75 is ridiculous. Base case NPV is almost
$500 million. Fully diluted that is
$1 a share. Presentation said small gold producers are valued at 6× to 8× cashflow. If we used the July production of
$12 million, that is
$144 million cash-flow per year. This is base case prior to ramp-up. 6× to 8× times cash-flow is a market cap between
$850 million to
$1.2 Billion. Fully diluted 516 million shares that valuation is
$2 a share.