# WRL - Washington Resources



## genesis (28 November 2005)

Seems to have promise, price pretty stable around 0.21. Does anybody have an opinion on this one? Thanks


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## exberliner1 (20 February 2007)

Check out WRL/O

The hold 10 million shares (or 21%) of NTU...currently $1.80

Areva has agreed to buy all WRL's options in NTU...

They have $4mn in cash

That lot above is worth about $24mn

Mkt cap id about $14mn

Plus lots of good mining prospects in there as well....

Heads 33c

Oppies (25c strike) mature feb 08 - 9c

Very thinly traded.... but of late a fair bit of buying

The 21% of NTU that WRL holds will be pivotal in Areva's plans...

The market hasn't noticed yet....anyone got any comments??

EB


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## exberliner1 (20 February 2007)

Sorry folks ...previous post again...this time without the mistakes...

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Check out WRL/O

The hold 10 million shares (or 21%) of NTU...currently $1.80 - so about $18mn

Areva has agreed to buy all WRL's options in NTU...for $1.8mn

They have $4mn in cash

That lot above is worth about $24mn

Mkt cap is about $14mn

Plus lots of good mining prospects in there as well....

Heads 33c

Oppies (25c strike) mature feb 08 - 9c

Very thinly traded.... but of late a fair bit of buying

The 21% of NTU that WRL holds will be pivotal in Areva's plans...and is worth more than the entire mkt cap

The market hasn't noticed yet....anyone got any comments??

EB


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## krisbarry (20 February 2007)

*Market has undervalued WRL * 

WRL owns 21% of NTU, check how much the share price of NTU has risen over the past week and how much WRL has risen.

WAKE UP PEOPLE!


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## exberliner1 (20 February 2007)

I also posted this on HC.....

With all that is going on with WRL, its spin off NTU and the attentions of the deep pocketed Areva I thought it might be interesting to try and attempt an assets per share for calulcation exercise for WRL at the moment.

The information used for this is all over the place in a number of announcements that have been issued during the last 6 months or so. It is has been necessary to draw it all together into one post which is what I am trying to do here. In addition I have taken into account posts on other forums as well as HC before coming up with this lot. So thanks also to everyone who has posted some meaningful numbers on the subject of WRL.

First then number of shares. It makes sense to do both diluted and undilted calculations as the options (WRLO) mature in February 2008 


Shares in issue 46.3mn
Options in issue 36.3mn (Feb 08 strike price 25c)

Undiluted 46.3mn
Diluted 75.1mn

Asset backing

10mn NTU shares (closed at $1.70 on 20th Feb 2007) = $17mn

NTU will issue options on a 2 for 1 basis within 6 months of listing – WRL has agreed to sell 4mn of these to Areva for 45c (after buying them for 1c ) = $1.76mn

WRL will retain 1mn NTU options - at today’s price (minus the 25c conversion and 1c purchase price) are worth around $1.44mn with no premium.

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NB for those who think it is not reasonable to include options not yet issued in an asset per share calculation I would make the point that the NTU options will be issued before the maturity date of the WRLO options and therefore it is only right to include these option figures in the diluted calculations – although not in the undiluted calculations – as the undiluted really is a snapshot of today. While the undiluted is looking forward although still based on what is known to be true today. (Hope that makes sense)

_______________________________________

Then we have the Yarawindah Nickel and Copper project – it is too early to place a value on this but the drilling results at an early stage look very good and the anomalies outlined in graphical form in the announcement of 1st December look very large. Pages 13 – 18 of the pdf if you want to have a look for yourself.

WRL started a 3,300 m drilling campaign on these targets on 18th December. The first 4 drill holes were reported on 21st December 

Hole 1 found mineralization from 50m to 95m (71-72m massive sulphide)
Hole 2 from 30m to 60m
Hole 3 from 68m to91m
Hole 4 from 31m to 131m (terminated in sulphide)

No assays are available yet but along with the historic drilling and WRL’s earlier drilling on this project we have enough to be positively encouraged by the ongoing program underway at Yarrawindah.

As it is too early to place an in situ value on Yarrawindah it is necessary to exclude it completely from any asset value calculations at the moment.

So back to the assets per share calculations

First of all undiluted:

Value of NTU holding : $17,000,000
Cash on balance sheet : $4,056,000

Total $21,056,000 / 46,300,000 shares = $0.45

Backing per share therefore $0.45 per share (against the current market price of $0.32c

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Now diluted

Value of NTU holding: $17,000,000
Cash on balance sheet: $4,056,000
4mn NTU options sold to Areva for 45c after buying them for 1c: $1,440,000
1mn NTU options: (based upon $1.70 – 0.25 – 0.01): also $1,440,000
Conversion receipt for WRL options (36,300,000 X 0.25): $9,075,000

Total $33,011,000 / 75,100,000 = $0.44

Undiluted backing per share therefore $0.44

I am of course well aware the diluted figure is a forward looking statement (as the Americans call it) and is therefore a bit meaningless as who knows where NTU’s share price will be by then – or if Areva will have bought NTU etc…or even Mega Uranium sitting patiently on the sidelines could show its hand.

So at the current market price of $0.32 WRL is at a substantial discount to it’s cash equivalent asset backing in both the diluted and undiluted form.

The Yarrawindah project therefore sits in the picture with a value of minus $0.12 which is completely absurd.

The entire company is worth an awful lot more than the $0.32 it closed at today.

Finally - in the only top 20 list I could find we learn

Top 20 holding of WRL 34mn shares (or 73.4%)

Top 20 holding of WRLO 28.8mn options (or 79.3%)

Max number of shares outside the top 20 = 12.3mn

Max number of options outside the top 20 = 7.5mn

That's why there are not many shares available to trade - those that own them don't want to sell - can you blame them.....the market float will be a fraction of the 12.3mn shares and 7.5mn options.

Bearing this in mind you will understand why I have bought lots of WRLO options – the upside should happen quickly so that WRL matches its cash asset backing.

I would be interested in any comments on my figures.

Be happy if you hold WRL or WRLO

EB


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## exberliner1 (20 February 2007)

correction

Now diluted

Value of NTU holding: $17,000,000
Cash on balance sheet: $4,056,000
4mn NTU options sold to Areva for 45c after buying them for 1c: $1,760,000
1mn NTU options: (based upon $1.70 – 0.25 – 0.01): also $1,440,000
Conversion receipt for WRL options (36,300,000 X 0.25): $9,075,000

Total $33,331,000 / 75,100,000 = $0.443

difference of 0.2c 

EB


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## krisbarry (20 February 2007)

Here are the charts for NTU and WRL


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