# WSA - Western Areas



## GreatPig (21 October 2006)

Attempting a bit of Fib on this one. Don't know if this is how you use Fib, but I've noticed at times with other stocks that the final high sometimes matches with mid retracements points as here.

If this one does the same, the target price is around $3.90.

Cheers,
GP


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## GreatPig (23 October 2006)

Currently $3.70, up over 9% today.

I didn't know it was going to try and get there in just one day 

GP

[I hold]


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## Brasidas (30 October 2006)

WAS gets a mention in this week's Minesite weekly roundup which is here 

That Was The Week That Was … In Australia 

By Our Man In Oz

Minews. Good morning Australia, another week, another record?

Oz. It certainly was for some stocks, especially those selling zinc and nickel to the steel industry. You probably saw the same reports we did down this way, that the world has almost run out of zinc, and the nickel price is showing no sign of retreating from its astonishingly high levels. The end result, naturally, is that zinc stocks such as Zinifex (ZFX), Perilya (PEM), CBH (CBH), Kagara (KZL) and Terramin (TZN) have moved into the stratosphere, joining the nickel brigade who where already up there.

Minews. A few price examples please?

Oz. Zinifex hit a 12-month high of A$15.05 during Friday trade, before settling back to close the week at A$14.65, a gain of A$1.14 (8.4 per cent), Perilya was up A70 cents (20.8 per cent) to A$4.05, down a fraction on its 12-month high of A$4.10 reached on Thursday and Friday. Kagara also set a 12-month high on Friday of A$7.34, before easing back to A$7.21, still up A82 cents (12.8 per cent). CBH, which received a severe setback at this time last year with a stope collapse in its Endeavour mine, was up A5.5 cents (8.8 per cent) to A67.5 cents, also a modest retreat from its high of A73.5 cents set on Thursday. Terramin, which is developing a small zinc mine close to Adelaide in South Australia, was up A14 cents (8.9 per cent) to A$1.70, down from a Thursday high of A$1.75.

Minews. And the nickel sector was strong again?

Oz. Yes, but not to the same extent as the zincs. Jubilee (JBM), which held its annual meeting during the week and said takeovers were off its agenda, was up a modest A20 cents (1.6 per cent) to A$12.60, down on its cracking start to the week when the stock hit a 12-month high of A$12.98. Western Areas (WSA) put on A25 cents (7.4 per cent) to close the week at A$3.64, also down from its 12-month high of A$3.79 set on Tuesday, and Minara (MRE) was up A11 cents (2.2 per cent) to A$5.20, which was some distance behind its 12-month high of A$5.55 set last week.  .. more ..


http://www.minesite.com/storyFull5.php?storySeq=3894


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## springhill (26 June 2007)

I noticed today 2 directors increased their holdings by minor amounts, but the money man behind Western Areas, Terry Streeter, decreased his holding by 300,000 shares. Any thoughts on that? Disclosure i hold WSA


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## springhill (21 September 2007)

Excellent breakout by WSA over last 2 days wit volume support
Further backed up if it can break and hold the LOR


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## motorway (21 September 2007)

Hello Spring

This  graduated to my watch list several weeks ago..

First on the changes in comparative relative strength
and second on other  signs of accumulation

some chart views  of the moment ..
The P&F suggests esp that the downtrend is finished
And with the bar chart that there is active accumulation..


My views of this moment 

motorway


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## springhill (21 September 2007)

motorway said:


> Hello Spring
> 
> This  graduated to my watch list several weeks ago..
> 
> ...




Thanks motorway, very helpful and ur graphs are alot better and more informative and interesting than mine. Sitting at $5.10 so LOR has broken. I really like this one, tipped to be successor to jubilee crown


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## stix1771 (7 April 2008)

springhill said:


> Thanks motorway, very helpful and ur graphs are alot better and more informative and interesting than mine. Sitting at $5.10 so LOR has broken. I really like this one, tipped to be successor to jubilee crown



Recent news on major upside drilling, especially Spotted Quoll deposit, which company says can rival Flagship Flying Fox deposit....... excellent grades, this company keeps delivering.

A third mine for WSA would certainly place it on the track to be the next JBM. We wait..... (not for too long  )


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## stix1771 (10 April 2008)

Profit takers in action, can't blame them. 

Indicated that update resources for SQ will be out next week "Mid April". Excellent results and grades released so far, resource statements should (hopefully) reflect that and we will see if the company's assertion that SQ will rival FF is correct.... I think it will be, anyone else?


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## lucifuge (3 May 2008)

springhill said:


> Thanks motorway, very helpful and ur graphs are alot better and more informative and interesting than mine. Sitting at $5.10 so LOR has broken. I really like this one, tipped to be successor to jubilee crown




I think you may be right,  it has been soaring through April 2008. In the last month its grown 75%!!! Have you guys sen the charts on this one lately??  What's going on?


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## springhill (3 May 2008)

lucifuge said:


> I think you may be right,  it has been soaring through April 2008. In the last month its grown 75%!!! Have you guys sen the charts on this one lately??  What's going on?




To be honest im rather bewildered at the lack of attention WSA gets on this forum. Excellent drill results have emerged from Spotted Quoll in the last few weeks, it has the potential to rival the amount of nickel at the Flying Fox deposit. Not to mention with Jubilee being swallowed, there is much speculation that Western Areas ( amongst others ) is a prime candidate as a takeover target aswell
On a side note, when the slump occured and WSA dipped to $3.95 i rang my broker and asked if she thought it would be a good idea to top up on them. Her answer was ummm...ahhhh...ummmm probably not. GRRRRRRRR  oh well should have backed my own judgement instead of the so called "experts"


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## lucifuge (3 May 2008)

springhill said:


> To be honest im rather bewildered at the lack of attention WSA gets on this forum. Excellent drill results have emerged from Spotted Quoll in the last few weeks, it has the potential to rival the amount of nickel at the Flying Fox deposit. Not to mention with Jubilee being swallowed, there is much speculation that Western Areas ( amongst others ) is a prime candidate as a takeover target aswell
> On a side note, when the slump occured and WSA dipped to $3.95 i rang my broker and asked if she thought it would be a good idea to top up on them. Her answer was ummm...ahhhh...ummmm probably not. GRRRRRRRR  oh well should have backed my own judgement instead of the so called "experts"




Yes, a takeover would be sweet as.  But more interestingly, as you point out I was amazed to find such a small thread on this stock.


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## motorway (3 May 2008)

> On a side note, when the slump occured and WSA dipped to $3.95 i rang my broker and asked if she thought it would be a good idea to top up on them. Her answer was ummm...ahhhh...ummmm probably not. GRRRRRRRR  oh well should have backed my own judgement instead of the so called "experts"




Have a careful look at these two charts
Can you see what "others were doing" regardless of what "others were saying"


motorway


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## Ghetto23 (18 December 2008)

From what I have read - with good production at Flying Fox and good drilling results at Spotted Quoll - does this look like a company that has some long-term prospects?

Does anyone have any ideas on WSA?


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## GREENS (19 December 2008)

Ghetto23 said:


> From what I have read - with good production at Flying Fox and good drilling results at Spotted Quoll - does this look like a company that has some long-term prospects?
> 
> Does anyone have any ideas on WSA?




Put it this way, if nickel prices fall to a point where Western Areas Spotted Quoll and Flying Fox mines become unprofitable and operating cash flows turn negative then it is likely that the demand for nickel has completely evaporated. As well, nearly every other nickel mine in the world would also be operating at a hefty loss.  So given that, its mines seem to be fundamentally sound as they are considerably high grade and hence low cost. I suppose this can also bring in the chance that if someone out there is interested in high grade nickel sulphide deposits that they may be a takeover target in depressed times such as these. However there aren’t many companies out there with the power to make major purchases at the moment.  

Definitely looks to be a great company for when the nickel price turns. But saying that I have not looked closely enough at the companies financials i.e. its debt/cash position. So if you’re interested in this company definitely have a good look to make sure there are no major debt repayments or major capital raising that are (or may be) needed in the short to medium term.


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## mitch87 (22 December 2008)

I'm also stunned at the lack of attention WSA has.  Their two primary deposits, spotted quoll and flying fox are world class, very high grade and one of the lowest cash operating costs in Australia.Their production will continue to add to profit, it is unlikely that nickel prices will fall to a point where WSA operates at a loss and therefore we should see some dividends soon, hopefully early next year.  With a target of 15,000t ni in FY09, 30,000 in FY10, then 35,000 in FY11,12,13 WSA is perfectly placed for solid growth and excellent returns, my own research has them valued at well over $10 so im excited about the future for WSA


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## surfingman (22 December 2008)

mitch87 said:


> I'm also stunned at the lack of attention WSA has.  Their two primary deposits, spotted quoll and flying fox are world class, very high grade and one of the lowest cash operating costs in Australia.Their production will continue to add to profit, it is unlikely that nickel prices will fall to a point where WSA operates at a loss and therefore we should see some dividends soon, hopefully early next year.  With a target of 15,000t ni in FY09, 30,000 in FY10, then 35,000 in FY11,12,13 WSA is perfectly placed for solid growth and excellent returns, my own research has them valued at well over $10 so im excited about the future for WSA




Some interesting points there Mitch, i am interested in looking at some of your research for the $10 valuation, and if you have it handy the cost of producing. 

I will be waiting to Jan or Feb to I get back in the Markets, but hope the best for you on a Very Merry Christmas rally...


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## Jigalong (29 March 2009)

springhill said:


> I noticed today 2 directors increased their holdings by minor amounts, but the money man behind Western Areas, Terry Streeter, decreased his holding by 300,000 shares. Any thoughts on that? Disclosure i hold WSA




This may be because two of the founding directors are being sued at present . This could affect WSA big time if they loose the case.

N.M.Mer


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## Jigalong (30 March 2009)

Director Terence Streeter seems easing out of WSA. 

Since the start of November he appears to have flogged over 6.5m shares.

Jigalong.


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## Sean K (14 May 2009)

Another one oversold and returned some pretty good tidings for those that saw the panic. Not me. 

Broke up nicely from the large triangle and conforming to some S&R since.

$5 ish looks like it might be holding so far and that big green box is no mans land. Like a lot of Ni, Zn, Cu companies, there was just absolute freefall through that zone. Nothing technically holding them back on the way up....

(market is due to fall over however)


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## Ghetto23 (10 June 2009)

Broke out of an ascending triangle today - let's see if it can hold.

No reason that this shouldn't keep going up?


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## springhill (30 July 2009)

Very nice 4 month upward trend by Western Areas, given the latest high hasn't reached the top line of the trend, would this suggest the current leg up is running out of steam? Opinions by chartists would be great


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## Zird (14 August 2009)

WSA has been lagging behind other Nickel companies SP but this announcement may help. I sold WSA last year after a warning of Nickel price crash and glad I did  but thinking I may jump back on.

Aug 12, 2009 21:49 ET
Western Areas Commits to Major Expansion at Forrestania

PERTH, AUSTRALIA--(Marketwire - Aug. 12, 2009) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

The Board of Western Areas (TSX:WSA)(ASX:WSA) is pleased to announce a decision to mine the Spotted Quoll open pit and double the capacity of the Cosmic Boy nickel concentrator. This should provide the opportunity for the Company to increase production from 10,330 tonnes nickel mined in FY2009 to achieve the target 20,000 tonnes nickel in CY2010.

In addition, the Spotted Quoll open pit mine and plant expansion will establish the basis for future increases in long term nickel production at Forrestania. A feasibility study has commenced for a substantial underground mine at Spotted Quoll which will be accessed from the open pit. Development of the underground mine is expected to commence in mid 2011.

The Company intends to start work at Spotted Quoll and the plant upgrade as soon as possible, subject to final ministerial consent. Major contracts have already been awarded for Spotted Quoll and the nickel concentrator with site works due to start in September.

The expansion schedule should result in first production from Spotted Quoll overlapping first production from the high grade T5 ore body at Flying Fox in the March Q 2010. As a result, Western Areas expects to be in a strong position to benefit from any further improvements in the nickel price. Average cash costs from the Flying Fox mine for the past 12 months were around US$2.00/lb and similar cash costs are expected from the Spotted Quoll open pit mine.

The Spotted Quoll mine and Cosmic Boy plant expansion will employ over 80 people during development and construction and 85 people during sustained production. Western Areas has funds available for the estimated $62M total cost of the expansion.

Spotted Quoll Open Pit Mine

Federal and State EPA approvals have now been received. There were no objections and the project has been recommended to the Western Australian Environment Minister for consent.

The revised Ore Reserve for the open pit mine (refer to Appendix 1) is 386,000 tonnes at an average grade of 5.1% nickel containing 19,900 t nickel. This represents only 16% of the total contained nickel in the current Spotted Quoll Mineral Resource which is approximately 2.0Mt at an average grade of 6.2% nickel containing 125,460 t nickel (to 640m depth).

The Spotted Quoll open pit is expected to be a very robust project with estimated cash costs of less than US$2/lb. The total capital cost for all surface infrastructure and full development of the 150m deep open pit is estimated to be A$36.2M. The open pit will also provide access to the planned underground mine.

Pre-production development will occur over a six month period with first ore production expected in March Q 2010. Target mine production from the open pit is 11,500 tonnes nickel in FY 2011 and 6,300 tonnes nickel in FY 2012. The mine schedule is intended to result in a smooth transition from open pit to underground mine production in early 2012.


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## Ghetto23 (15 August 2009)

Still looks like it's following a similar trendline - if it keeps following this trend it looks like $6.80 is very possible in the short term.


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## enigmatic (8 October 2009)

Has anyone been following this one, I have always been keen on Western Areas as they seem to have good growth in the near term. However i noticed they had some serious strong growth in SP and then suddenly fallen off anyone have any ideas.


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## rustyheela (23 October 2010)

*WSA*

Any ideas on the trading halt. rights issue? takeover? resources upgrade? profit downgrade?


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## oldblue (23 October 2010)

*Re: WSA*



rustyheela said:


> Any ideas on the trading halt. rights issue? takeover? resources upgrade? profit downgrade?




It's regarding "a partial exchange offer" in respect of the convertible bond exchange

http://www.asx.com.au/asxpdf/20101021/pdf/31t87781yhxlqf.pdf


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## springhill (18 April 2013)

Not my end of the market, but my uncle has a few. Resource end of the market obviously down, but does WSA seem to have beaten too far for a dividend paying share?
Directors seem to think so as there has been small scale buying from 2 of them at $2.90.

This was not far off GFC low of $2.46


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## skc (18 April 2013)

springhill said:


> Not my end of the market, but my uncle has a few. Resource end of the market obviously down, but does WSA seem to have beaten too far for a dividend paying share?
> Directors seem to think so as there has been small scale buying from 2 of them at $2.90.
> 
> This was not far off GFC low of $2.46




Look at the other nickel names , MCR, MBN, IGO, PAN... WSA isn't doing that badly relative to GFC lows.


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## burglar (18 April 2013)

skc said:


> Look at the other nickel names , MCR, MBN, IGO, PAN... WSA isn't doing that badly relative to GFC lows.




WSA has been a giant amongst nickel producers.


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## notting (14 January 2014)

Reversed hard back to the do or die spot.
Looking to short this and it's friends.


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## VSntchr (14 January 2014)

notting said:


> Reversed hard back to the do or die spot.
> Looking to short this and it's friends.




What platform can you short this with Notting? I can't with IG


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## piggybank (14 April 2014)

Daily P&F Chart:-

​


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## notting (15 April 2014)

Shorted it at 3.968 (average) today.
Stop just above today's high.
AWC confirmed with it's earnings that Indonesians export ban will have no material impact.


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## piggybank (24 April 2014)

View attachment 57708​


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## piggybank (28 April 2014)

An Updated P&F Daily Chart.

​


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## notting (15 April 2016)

Starting to look like one of those brilliantly timed capital raisings at the bottom, achieving maximum liquidation for stock holders.


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## Gringotts Bank (10 May 2016)

Looks like it's getting bashed up.  Although historically, it does have a history of swings of that size.  
I don't know.


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## Gringotts Bank (11 May 2016)

Gringotts Bank said:


> Looks like it's getting bashed up.  Although historically, it does have a history of swings of that size.
> I don't know.




Terrible lack of confidence in today's trading.  Looks like 2$ will be tested very soon.


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## notting (6 July 2016)

$2 Tested 8 times, Since January, $2.60 tested 4 times since January.
What does that mean,it's worth $2.30? 

Nickel got smashed last night on the back of new over supply talk and I'm remembering the capital raising at $2, the bottom to be tested, maybe just once more!


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## notting (7 July 2016)

5% gains destroyed in 10mins into the close


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## notting (7 July 2016)

Double shooting star reversals!


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## notting (20 July 2016)

I love it when it gets real.
I am now convinced that people who trade this are on acid.


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## Miner (28 September 2016)

Hi Notting - where are you ??

Last posting on WSA was end of July this year. Was hoping to see many more with Nickel play and this being a rising star.
Any way cutting short to share my observation.
With Philippine saga alongwith few like OGC, this dived down today. For last few days with rising nickel price and impressive annual result, the SP was going north.
However interestingly since 1 September, four sell were executed by the directors for considerable amount.
Opportunity knocks to make money. Of course but how about the sales were done and now today the price gone down by more than 4.7% as I write.
No correlation but just hunch to stay on side line and watch before committing.
Do not hold yet.


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## notting (28 September 2016)

I had been waiting for my dealer so I coul ask the Cheshire cat what to do next.
He said buy it when it was 2.56. Unfortunately I took the  blue pill that made me wait till after the first debate.


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## willy1111 (14 January 2017)

What's with the 20% decline yesterday?

Australian Super selling down a major holding? Volume about 6 times the previous few days


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## skc (15 January 2017)

willy1111 said:


> What's with the 20% decline yesterday?
> 
> Australian Super selling down a major holding? Volume about 6 times the previous few days




I think it was mostly to do with the Indonesian government easing export ban. That ban caused the nickle price to jump a bit when it was implemented some time ago (sorry I can't remember the exact time but I am sure you can find the answer easy enough).

IGO is another ASX nickel producer of note and took a hit as well.

https://thewest.com.au/business/min...as-indonesia-relaxes-export-ban-ng-b88354633z


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## Wyatt (12 September 2018)

How low can WSA go on this current ugly dive, will it get to $2 again? is this slump reasonable considering the current LME price, LME stocks, demand and the $AUD.

Sure they have mined the easiest resources and output has plateaued and minerals are on the nose atm with the threat of US tariffs impacting the Chinese economy, but will this last forever?

If there is any significant future growth in nickel usage in EV batteries, which somewhat seems likely, according the their annual report they stand in good stead for this opportunity.

I don't own any, fortunately.....just sayin
View attachment 89305


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## So_Cynical (1 June 2019)

Things are looking rosy for Aussie Nickel producers and WSA seems to be the best of the bunch, quality mines with high grades and 12 or 14 years worth of reserves.
They have a pile of cash and no debt, any increase in the Nickel price is pure profit and the fundamentals around the NCM 811 battery would seem to be very positive.
Lots of price action around the $2 mark, likes to bounce off that level.
~





Reading about the Cosmos mine, Xstrata purchased the mine from Jubilee Mines for A$3.1 billion during a period of high nickel prices in late 2007 then Nickel prices crashed and eventually the mine was closed and Glencore decided to exit the WA nickel business selling the mine to Western Areas for A$24.5 million in 2015. It comes with a 450 Ktpa concentrator, new SAG mill, 500 bed accommodation village, offices, supplies, airstrip etc. A perfectly timed contrarian purchase at the very bottom of the price cycle, the mine will reopen soon.


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## tinhat (10 July 2019)

I bought in a few weeks ago with a speculative holding purchased @$2.05 . Goldman Sachs have a $1.80 price target on this stock and what do you know, the short interest has been climbing this year (as has the price of nickel). Class 2 nickel demand is going to go through the roof over the next couple of decades, and while there will be plenty of supply come into production around the globe I'm speculating on a short term deficit of supply as EV battery production ramps up around the globe.


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## Trav. (28 July 2019)

WSA had a good run in the last week or so on news and pulled back a bit on Friday.

I see some resistance at 2.53 but one to watch.


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## tinhat (28 July 2019)

A fair bit of short interest at the moment too. Currently 7.78%. I bought at $2 and have an order in the market at $1.95.


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## Trav. (29 July 2019)

good pickup @tinhat as this is something that I don't normally look at

https://www.shortman.com.au/stock?q=wsa


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## Trav. (11 August 2019)

Still some short interest but fighting back after drop


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## barney (11 August 2019)

Trav. said:


> Still some short interest but fighting back after drop




The wide range high Volume bars last couple of days are often a signal for a pause, but if it manages to break that $2.52 resistance area with gusto, it could be off to the races!


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## Trav. (11 August 2019)

barney said:


> The wide range high Volume bars last couple of days




I look at this spread as people exiting due to being trapped when buying on the news (qrtly report) and are trying to get out at break even or a small loss.

I agree it will be interesting to see what happens next week.


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## So_Cynical (11 August 2019)

Nickel price going up, WSA share price going up > fundamentals are now clearly positive, least till China blows up.


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## brty (18 August 2019)

This is setting itself up beautifully for the annual report this week on a TA basis. If the price holds and the profit and future forecast for q1 are as positive as they should be, then this is set to possibly gap up beyond that $2.50 region, which would make jumping on board after the report difficult (having to have wide stop loss), for traders.

Given the $Aus price of Nickel, there is no fundamental reason why this has been trading as low as it has, but it is a great trading stock with good volume and nice moves.
I'm currently very long on this, but managed to buy at $2 and $2.12. I've bought the bounce a few times in the last year, and held for the break of $2.50, but ended up giving back lots of profit because of wide stops. Maybe this time it will break out, all the technicals seem to be lining up for me, but waiting for the break is not the correct play IMHO, as it could see $3 in the blink of an eye after report release.


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## Trav. (20 August 2019)

Plethora of announcements out today

https://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=wsa&timeframe=D&period=W






First page of Prelim Final report looks good. But will wait and see if market agress


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## So_Cynical (20 August 2019)

Dividend held at 2 CPS FF, better than a poke in the eye with a blunt stick.


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## HelloU (2 September 2019)

So_Cynical said:


> Dividend held at 2 CPS FF, better than a poke in the eye with a blunt stick.



yep, and maybe a quick trade from a little squeeze as well if lucky ... as prices rise


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## barney (2 September 2019)

brty said:


> This is setting itself up beautifully for the annual report this week on a TA basis.
> 
> then this* is set to possibly gap up beyond that $2.50 region*




Can't call them much better than that …. Currently $2.90 today


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## HelloU (2 September 2019)

barney said:


> Can't call them much better than that …. Currently $2.90 today



hey
unless the short is held from pre Nov18 (and what are the chances of that) it is scramble time cos it is getting quite hot (and nickel going up to add heat)...............


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## barney (2 September 2019)

HelloU said:


> hey
> unless the short is held from pre Nov18 (and what are the chances of that) it is scramble time cos it is getting quite hot (and nickel going up to add heat)...............



Had a squiz at the intraday Volume etc … Plenty of profit takers on the gap higher (currently trading lower) …. see how she closes today/opens tomorrow.


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## sptrawler (2 September 2019)

HelloU said:


> hey
> unless the short is held from pre Nov18 (and what are the chances of that) it is scramble time cos it is getting quite hot (and nickel going up to add heat)...............



All the nickel producers went through the roof today, obviously the penny has dropped, or the institutions are making hay, while the U.S Market is on a down day.


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## HelloU (2 September 2019)

HelloU said:


> yep, and maybe a quick trade *if ya do that sort of thing* from a little *short* squeeze as well if lucky ... as *nickel market* prices rise *like they did over the weekend*






HelloU said:


> hey
> unless the short is held from pre Nov18 (and what are the chances of that) it is scramble time cos it is getting quite hot for the shorters *and they might be getting very nervous* - *as they are something like 8% of capital short off the top of my head *(and nickel *spot prices *going up to add heat *to the share price of this*)...............



sorry boys, i really do write a crappy post. Fixed them.... sorta.

(barns - bdc are still putting out anns - cr some way off but they are positioning to be a player - little player anyhow)


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## HelloU (2 September 2019)

barney said:


> Had a squiz at the intraday Volume etc … Plenty of profit takers on the gap higher (currently trading lower) …. see how she closes today/opens tomorrow.



not really a surprise when u look at the 1 year chart - some wiping their brows I imagine. (dnh)


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## So_Cynical (3 September 2019)

Pretty good announcement - St george found something at the Mt Alexander Project (WSA 25%)

Drill hole MAD151, Massive sulphides with average XRF readings of 5.48%Ni and 1.77%Cu - only a 1 meter interval of 7.5 
meters of mineralisation, shallow less than 52 meters down, Mt Alexander really starting to look like a good thing.

http://clients2.weblink.com.au/news/pdf_1\02142172.pdf


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## Smurf1976 (3 September 2019)

So_Cynical said:


> Pretty good announcement - St george found something at the Mt Alexander Project (WSA 25%)



A further increase in the share price of WSA today to high of $3.17.

That's the highest price since August 2018.


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## So_Cynical (4 September 2019)

Smurf1976 said:


> A further increase in the share price of WSA today to high of $3.17.
> 
> That's the highest price since August 2018.




Nickel price running up on the Indonesian ban news, Indonesia to ban nickel ore exports from January next year.

https://www.thejakartapost.com/news...-to-ban-nickel-exports-from-january-2020.html


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## Trav. (9 September 2019)

I am enjoying the run here on WSA, another with trading target reached and now with TS in place.

I should have traded my cobalt stocks in long ago and jumped on the nickel bandwagon


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## So_Cynical (23 June 2020)

WSA is Today's biggest ASX200 winner up 15.6% thanks to a very good announcement re a 200 meter intercept of nickel and copper in western SA.

https://www.asx.com.au/asxpdf/20200623/pdf/44jw020j7nsjgx.pdf


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## barney (23 June 2020)

So_Cynical said:


> WSA is Today's biggest ASX200 winner up 15.6% thanks to a very good announcement re a 200 meter intercept of nickel and copper in western SA.





Trav. said:


> I am enjoying the run here on WSA, another with trading target reached and now with TS in place.




No real point to make other than the fickleness of trading Stocks in general.

@Trav. pointed out last September how well this was shaping up.  Since then we have had a 50% retracement (approx. $3.45 down to $1.65) followed by the current run up ($1.65- $2.70  Over 50%)

I guess it just shows you have to be nimble whether you are trading Specs, Mid caps or even Big caps


----------



## tinhat (27 June 2020)

So_Cynical said:


> WSA is Today's biggest ASX200 winner up 15.6% thanks to a very good announcement re a 200 meter intercept of nickel and copper in western SA.
> 
> https://www.asx.com.au/asxpdf/20200623/pdf/44jw020j7nsjgx.pdf




I'm long several Nickel miners and I don't think I even noticed the share price movement. Nickel is a very volatile commodity in terms of price. Anyone looking to invest in a nickel miner should take that into consideration.

That said, I like WSA.


----------



## Chronos-Plutus (22 July 2020)

I have been looking at WSA this morning. I tend to look for value in precious metal miners over base metal miners; however WSA looks good to me:

- Little to no debt
- In production
- Decent mine with low cost
- More projects in the pipeline for further growth
- Relatively low number of shares on issue
- Cash in the bank
- Dividends
- Nickel price at long-term cyclical lows

A bit more work to do before I consider buying. I might wait towards the end of the year though to see how the virus crisis plays out.


----------



## peter2 (22 September 2020)

Considering that nickel is a must have for EV batteries, I'm surprised that WSA's share price hasn't been in demand at all. It rallied after the virus selloff but has drifted lower ever since. It's perplexing as nickel explorers have been bid but not this nickel producer with no debt.


----------



## tinhat (28 September 2020)

peter2 said:


> Considering that nickel is a must have for EV batteries, I'm surprised that WSA's share price hasn't been in demand at all. It rallied after the virus selloff but has drifted lower ever since. It's perplexing as nickel explorers have been bid but not this nickel producer with no debt.
> 
> View attachment 112105



Any reason why you are picking out WSA? I hold WSA. How is IGO going?  I don't hold IGO.

MCR is doing OK - especially when they gave shareholders the opportunity to load up at 14c.

Nickel. Offtake contract or nothing. Elon's talk is too cheap.


----------



## peter2 (30 October 2020)

Now we know why insto's weren't interested in WSA.


----------



## Miner (31 October 2020)

peter2 said:


> Now we know why insto's weren't interested in WSA.
> 
> View attachment 113947



@peter2 - On the face of it, I thought market over reacted on the disappointing result. Monday will tell us better.
https://cdn-api.markitdigital.com/a...access_token=83ff96335c2d45a094df02a206a39ff4 

If Instos were not interested how come PPT increased their stake only two days earlier by 2 % about ?


			https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02300647-6A1003920?access_token=83ff96335c2d45a094df02a206a39ff4
		

Only on 19 Oct PPT enhanced their stake by 1 %


			https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02295597-6A1001840?access_token=83ff96335c2d45a094df02a206a39ff4
		

On 15 Oct PPT became substantial holder and then kept on buying. Joe Blogg I can understand but so called highly skilled (??) investment managers did not have any clue on the forthcoming disastrous result from WSA only suggest PPT has very poor market observations.


----------



## peter2 (31 October 2020)

We know the WSA analysts at PPT are in the office or more likely at home wearing their PJ's. Covid restrictions probably prevented them going to the WSA mines, Flying Fox and Spotted Quoll. Do you think they were aware that WSA is processing lower grade ore during the last quarter and that their costs were increasing because of this?  Even without the covid restrictions they wouldn't investigate these details. Visiting analysts just want the spiel and a good lunch. 

We only have to look at the PPT chart to see their poor portfolio mgt performance.


----------



## sptrawler (31 October 2020)

From memory they are tied up pretty heavily with Panoramic in the Savannah mine, which seems to have become a bit of a dog, the push for battery grade nickel might be an issue for some producers?


----------



## The Triangle (31 October 2020)

Here's a quick little chart I did by looking at the summary of the last few EOFY announcements.  Red dots and blue dots show the guidance range (upper and lower) and the green line shows the actual.    The trend is crystal clear- WSA costs are skyrocketing.  The new guidance of 3.5 to 4.0 announced yesterday seems far more reasonable.     I doubt this is a one off hiccup.  May have to call PPT and offer my services! 

Would not surprise me if the $30m investment in PAN, and $300 m for the new mine has stretched WSA too thin.  Cash balances of $120m + a quarterly operating cashflow of +$10 million does not seem enough to fund the remaining commitments for the next 2-3 years without taking on debt or raising capital.  May have to do a little more research on that one.  It's easy to bet againt these juniors building mines.


----------



## sptrawler (31 October 2020)

The Triangle said:


> Here's a quick little chart I did by looking at the summary of the last few EOFY announcements.  Red dots and blue dots show the guidance range (upper and lower) and the green line shows the actual.    The trend is crystal clear- WSA costs are skyrocketing.  The new guidance of 3.5 to 4.0 announced yesterday seems far more reasonable.     I doubt this is a one off hiccup.  May have to call PPT and offer my services!
> 
> Would not surprise me if the $30m investment in PAN, and $300 m for the new mine has stretched WSA too thin.  Cash balances of $120m + a quarterly operating cashflow of +$10 million does not seem enough to fund the remaining commitments for the next 2-3 years without taking on debt or raising capital.  May have to do a little more research on that one.  It's easy to bet againt these juniors building mines.
> 
> View attachment 114032



Good summation, well worth researching further IMO.


----------



## So_Cynical (1 November 2020)

A lot of bottoms around the $1.90 - $2 range - 7 times in 5 years, has been a bad 5 years for nickel though, and now COVID and growth worries.
~


----------



## The Triangle (2 November 2020)

So_Cynical said:


> A lot of bottoms around the $1.90 - $2 range - 7 times in 5 years, has been a bad 5 years for nickel though, and now COVID and growth worries.
> ~
> View attachment 114065



Could argue It's been a great 5 years for nickel and a bad 5 years for WSA.  Revenue growth for 5 years has not translated in to shareholder returns.   I do think there are a lot of people looking at charts seeing that same $2 'floor' and thinking this is a good price.  I do not think it's a good price.




	

		
			
		

		
	
Bit more analysis.
$145m - Cash in the bank of EOFY.
$190m - Rough operating cash costs
$170m - Rough Capex for this year
$10m - Rough leases+dividends  
Nickel prices need to be +$21,000/t all year to get them to about $270m revenue based on lower guidance of 18kt.   

A possible FY21 scenario: $270+$145-($190+$170+$10)=$45m left.  And they still have $130 million to spend on odyseus for FY22 plus all their other capital spending.  $270+$45-($190+$130+$35+$10)= -$50m shortfall.  

If there's a drop in nickel prices, if there is a second guidance downgrade, if their mine project has delays and additional costs, WSA are going to be in a far worse position than above.   What will be very interesting is how things go with PAN.  PAN spent 12 million last quarter and in 3-6 months may need another cash injection.  Will WSA give them more?   The only upside in my book is that they are still drilling and exploring.  Never know what that can bring.


----------



## sptrawler (2 November 2020)

The Triangle said:


> Could argue It's been a great 5 years for nickel and a bad 5 years for WSA.  Revenue growth for 5 years has not translated in to shareholder returns.   I do think there are a lot of people looking at charts seeing that same $2 'floor' and thinking this is a good price.  I do not think it's a good price.
> View attachment 114086
> 
> 
> ...



As both you and @peter2 have pointed out, the elephant in the room for WSA, is the falling recovery rates increasing underlying costs. 
Unless they come up with a new higher Ni content resource to halt the slide, or the price of Ni takes off, things will get progressively tougher.
Good pick up.

I don't hold, am holding MCR and thinking about IGO.


----------



## So_Cynical (2 November 2020)

The Triangle said:


> Could argue It's been a great 5 years for nickel and a bad 5 years for WSA.



The 20 year nickel chart makes the last 5 years look not so good, fair enough that the crazy prices of 2007 and 11 were extreme, 21K - AUD being sustained is not crazy by any stretch, a new 8 year high isn't that far away.


----------



## Miner (3 November 2020)

Some extract
Contrary to market Morning Star and Fat Prophets have maintained their buy ratings.
Could that to take the opportunity to keep the heat on and for them to sell out ?
Morningshar provides a fair value $1.9




DYOR


----------



## sptrawler (3 November 2020)

Hi @Miner it is interesting to compare WSA and IGO's quarterly activity statement, both are pretty comprehensive.
Their share prices do seem to reflect where both are at IMO.



			https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02301073-6A1004119?access_token=83ff96335c2d45a094df02a206a39ff4
		




			https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02301959-6A1004515?access_token=83ff96335c2d45a094df02a206a39ff4


----------



## Miner (5 November 2020)

sptrawler said:


> Hi @Miner it is interesting to compare WSA and IGO's quarterly activity statement, both are pretty comprehensive.
> Their share prices do seem to reflect where both are at IMO.
> 
> 
> ...



Thanks, mate @sptrawler. good information.


----------



## dyna (14 December 2020)

Western Areas' mine-life issues coming to the for.The SP might be steadily rising($2.50)but WSA is now,at 10% of its stock, the 2nd most shorted company on the ASX. Might be headed to the market with the begging bowl,soon eh?


----------



## So_Cynical (14 December 2020)

dyna said:


> Western Areas' mine-life issues coming to the for.The SP might be steadily rising($2.50)but WSA is now,at 10% of its stock, the 2nd most shorted company on the ASX. Might be headed to the market with the begging bowl,soon eh?




Pretty sure they had close to enough money to get the new (old) mine up and running.


----------



## Trav. (24 January 2021)

WSA came up on my CAM weekly scan and is travelling well so far.

Looking at the wave count on the weekly chart below for interest, WSA shows some potential upside for the typ. W3 but we will see.

Holding @ 2.77


----------



## Trav. (25 January 2021)

I couldn't help my self and added to my position today. SP currently sitting @ $3.02 so hopefully it holds the $3 level.


----------



## Dona Ferentes (9 March 2021)

• Fully underwritten placement to raise A$85 million  @ $2.15 floorprice, with bookbuild
• Non-underwritten Share Purchase Plan available to eligible shareholders to raise up to A$15 million at the same price as the placement 
• Proceeds from the placement and Share Purchase Plan will be used to complete the Odysseus development, advance organic growth projects at Forrestania and Cosmos and continue exploration  



> o Provides funding for mine development capital expenditure at Odysseus with development progressing on schedule and first concentrate production targeted in mid FY23. Once in steady state production, delivery of 14.6kt nickel in concentrate per annum is targeted from Odysseus
> o Allows progression of studies with respect to the inclusion of AM6 in the Odysseus mine plan and New Morning in the Forrestania mine plan
> o Proceeds will help advance Western Areas' targeted drilling campaign on its portfolio of exploration assets which includes Western Gawler, Metal Hawk and Forrestania (among other projects


----------



## peter2 (10 March 2021)

IMVHO another ripoff spp. Price now below the spp price. Retail investors shouldn't lose as much. 

The performance of the WSA share price has been a huge disappointment at a time of record nickel prices and the significant underlying demand for more nickel production.


----------



## dyna (11 March 2021)

Just like Santos,WSA can't be relied on for the long term.It shows in the share chart.Buy in when it looks cheap...and as soon as things start to look promising,dump it.


----------



## The Triangle (18 March 2021)

dyna said:


> Western Areas' mine-life issues coming to the for.The SP might be steadily rising($2.50)but WSA is now,at 10% of its stock, the 2nd most shorted company on the ASX. Might be headed to the market with the begging bowl,soon eh?



Oh my.  Begging bowl out again!   For all the hard years of being a shareholder one can have the privilege of subscribing to shares at $2.15 - or can buy them on market for $2.05 today. 

Nickel has been climbing for 5 years.  WSA shareholder value has not.  The company needs a clean-out (Despite being being a fantastic short term trading opportunity).


----------



## sptrawler (18 March 2021)

The Triangle said:


> Oh my.  Begging bowl out again!   For all the hard years of being a shareholder one can have the privilege of subscribing to shares at $2.15 - or can buy them on market for $2.05 today.
> 
> Nickel has been climbing for 5 years.  WSA shareholder value has not.  The company needs a clean-out (Despite being being a fantastic short term trading opportunity).



It will be interesting to see the uptake on the raising, the price of nickel has been falling for the last month, so could be a hard call for WSA.


----------



## peter2 (23 July 2021)

@divs4ever . I agree, *WSA *has been a dog since the GFC. Even for this short term trader it's been a tricky one to trade. It's on my never to be traded list. 

Here's monthly chart (a timeframe that I only look at once in a blue moon) showing the disappointing price movement since the GFC.


----------



## divs4ever (23 July 2021)

well i won't be tipping in more cash , so they can  save postage there 

 BTW how many cap. raises is that now  , considering it has been in full production since i bought in ( even MCR and PAN resorted to moth-balling mines  , for a while )


----------



## sptrawler (23 July 2021)

divs4ever said:


> well i won't be tipping in more cash , so they can  save postage there
> 
> BTW how many cap. raises is that now  , considering it has been in full production since i bought in ( even MCR and PAN resorted to moth-balling mines  , for a while )



Yes WSA, I haven't been following them since we discussed on here a couple of years back that their ore recovery cost was increasing as the % of contained nickel in ore was falling, unless they found higher yield ore they were struggling.
like I said I haven't been following them, so I don't know what their recovery rate is now.
Really nickel is a boom and bust commodity, unless you have good infrastructure and or a good ore body, it is hard work.
Just my opinion.


----------



## The Triangle (24 July 2021)

sptrawler said:


> Yes WSA, I haven't been following them since we discussed on here a couple of years back that their ore recovery cost was increasing as the % of contained nickel in ore was falling, unless they found higher yield ore they were struggling.
> like I said I haven't been following them, so I don't know what their recovery rate is now.
> Really nickel is a boom and bust commodity, unless you have good infrastructure and or a good ore body, it is hard work.
> Just my opinion.



Thought I would check up on WSA again myself.  Refreshed this graph from last year...  Looking at quarterly report from yesterday it's clear to see that their cost forecasting has continued to deteriorate.   How many times will WSA change the goal posts on costs _next _FY? 

I would stop bagging them out if their nickel production was also significantly higher than previous years - Fair enough - up the costs and increase production and improve total profits...  but nickel production is also down.   Nickel prices have saved this company.   Can't wait to see annual numbers.  Slightly difficult to reconcile capital spending based on quarterlies.


----------



## rederob (30 July 2021)

FY22 guidance out today:




WSA's production costs have risen mostly as a result of more lower grade ore in their processing mix.
On the positive side, the trend of rising nickel prices is very likely to continue well into the future.




WSA have more irons in the fire so annual production estimates are likely to be exceeded beyond 2025.
This is not a stock you would readily invest in unless you were certain nickel was going to hold above $20k/tonne going forward.


----------



## divs4ever (19 August 2021)

Western Areas Ltd (ASX: WSA, “Western Areas” or the “Company”) has noted media reports published by The Australian Financial Review in relation to a potential transaction involving Western Areas. Western Areas confirms that it is in preliminary discussions with IGO Limited in relation to a change of control proposal and the basis upon which engagement and due diligence between the parties could proceed. Given the preliminary stage of discussions, there can be no assurance whether any transaction will eventuate or what the terms and conditions of any such transaction might involve. Western Areas will continue to keep shareholders updated as appropriate.

 DYOR

 up 12% today 

 ( but i am down 52% )

 not a very popular stock here  ( but i suppose  that is reasonable for a continuous under-deliverer )


----------



## The Triangle (19 August 2021)

While IGO is insanely overvalued they should be using their hefty market cap to pounce on WSA and PAN.


----------



## divs4ever (19 August 2021)

i exited IGO after they sold the Tropicana interest  , at a healthy  profit  , considering i was  a holder for less than a year 

 so yes i agree on your perception of it being over-valued  ,but surely they seem to be very aggressive 

 are they worried someone like MIN will beat them to all the  tasty morsels


----------



## rederob (19 August 2021)

WSA are achieving good margins as prices remain elevated, warehouse inventories are low, and the outlook remains positive.


----------



## sptrawler (19 August 2021)

divs4ever said:


> i exited IGO after they sold the Tropicana interest  , at a healthy  profit  , considering i was  a holder for less than a year
> 
> so yes i agree on your perception of it being over-valued  ,but surely they seem to be very aggressive
> 
> are they worried someone like MIN will beat them to all the  tasty morsels



IGO have rocketed since they bought into the Chinese lithium mine and nearly complete lithium processing plant at Kwinana, whether they can work well with Tianqi remains to be seen.
The market definitely liked the move, as can be seen by the share price and leveraging into more nickel may be the early stages of something bigger?


----------



## divs4ever (19 August 2021)

sptrawler said:


> IGO have rocketed since they bought into the Chinese lithium mine and nearly complete lithium processing plant at Kwinana, whether they can work well with Tianqi remains to be seen.
> The market definitely liked the move, as can be seen by the share price and leveraging into more nickel may be the early stages of something bigger?



 but i am not convinced lithium is the way to go  , i think somebody will come up with a better ( or cheaper ) solution 

 assuming EVs  dominate personal transport in 2030 the demand will be HUGE , and China is likely to have a second monopoly ( via trade agreements with Afghanistan ) to go with the REE dominance 



 it the West is to compete it MUST cut production costs ( or make a superior product )


----------



## sptrawler (19 August 2021)

divs4ever said:


> but i am not convinced lithium is the way to go  , i think somebody will come up with a better ( or cheaper ) solution
> 
> assuming EVs  dominate personal transport in 2030 the demand will be HUGE , and China is likely to have a second monopoly ( via trade agreements with Afghanistan ) to go with the REE dominance
> 
> ...



I agree, batteries IMO are a stop gap, but they will require a huge amount of them before they go "hang on a minute, this is ridiculous".
As per usual it is all about timing.


----------



## divs4ever (19 August 2021)

time is something i might not have


----------



## sptrawler (19 August 2021)

divs4ever said:


> time is something i might not have



We all have that problem, in varying degrees.


----------



## So_Cynical (20 August 2021)

AFR reporting that Andrew Forrest is interested with 5.28% - a bidding war would be lovely.









						Andrew Forrest goes substantial in Western Areas
					

Friendless a few days ago, there’s now two suitors seemingly circling Western Areas.




					www.afr.com


----------



## rederob (20 August 2021)

WSA's long term wedge formation was due for a breakout later this year to early next as the company has very good future prospects as the nickel market continues to underpin strong prices.




*However a funny thing happened on the way to this forum:*​Western Areas (ASX:WSA) share price jumps 10% after Twiggy Forrest buys stake​


----------



## divs4ever (20 August 2021)

So_Cynical said:


> AFR reporting that Andrew Forrest is interested with 5.28% - a bidding war would be lovely.
> 
> 
> 
> ...



since i bought some FMG this morning  and have held IGO in the past ( and departed with a smile on my face )

 a scrip component  in any offer made  , might be an extra temptation  ( no fun when the predator is someone you dislike )

 i guess time will tell , but  i doubt FMG would fight had for WSA  ( might fight a lot harder if IGO was the prize )

 but you never know

 surely Twiggy hasn't been watching me , and learning  my 'side-door technique ' into increasing my holding in a share ( when a scrip component is on offer )

 AHE/G ==> extra APE

 TTS ==> extra TAH

 and so on  have used this tactic several times over the years ( depends on the mathematics of course )


----------



## Tropico (20 August 2021)

So_Cynical said:


> AFR reporting that Andrew Forrest is interested with 5.28% - a bidding war would be lovely.
> 
> 
> 
> ...



He is changing allegiances, selling POS and buying WSA.
I think I have seen some other changes in substantial holdings for Twiggy, but just can't recall then at the moment.


----------



## divs4ever (21 August 2021)

Nickel Is Becoming a Battleground for Bets on Battery Future​








						Nickel Is Becoming a Battleground for Bets on Battery Future
					

(Bloomberg) -- The race to supply automakers with nickel to power their batteries is pitting two of the biggest names in mining against each other. A company owned by Australian iron ore billionaire Andrew Forrest signaled its refusal to back down after a proposal to buy Canadian nickel...




					au.finance.yahoo.com
				




 just be careful 
Australia has had a BIG nickel  bubble before 

( look up Poseidon Nickel   [not the current ASX listed one ] on the web )

 DYOR


----------



## Miner (22 August 2021)

peter2 said:


> IMVHO another ripoff spp. Price now below the spp price. Retail investors shouldn't lose as much.
> 
> The performance of the WSA share price has been a huge disappointment at a time of record nickel prices and the significant underlying demand for more nickel production.



With takeover out of the blue, this spp would now be attractive on the hindsight. I also did not subscribe to the SPP  then


----------



## divs4ever (22 August 2021)

i didn't participate  in the last SPP , but i got sucked in   , in an earlier one 

 my best hope is a take-over  that has a scrip component  ( either IGO or FMG scrip would be perfectly acceptable )


----------



## sptrawler (24 August 2021)

Western Areas numbers aren't anything special, it may help the take over move.








						Western Areas posts full-year loss amid acquisition interest
					

IGO said it was in preliminary talks to acquire Western Areas as part of efforts to raise its footprint in battery materials.




					www.mining.com
				



From the article:
Western reported an over 16% drop in full-year revenue to A$257.2 million ($185.29 million) and posted a full-year net loss of A$7.7 million compared with a profit of A$31.9 million a year earlier.

The company added nickel sales fell nearly 22% for the year, as production was hit by operational issues at the Forrestania project in Western Australia.


----------



## divs4ever (24 August 2021)

i would definitely prefer scrip ( if either IGO or FMG are successful ) to cash 

 despite the fact i exited IGO not so long back ( in profit )


----------



## divs4ever (21 September 2021)

RESPONSE TO MEDIA SPECULATION – WESTERN AREAS
IGO Limited (ASX:IGO) (“IGO” or “the Company”) notes recent media speculation regarding discussions between IGO and Western Areas Limited (“WSA”) regarding a potential change of control transaction .
While IGO does not comment on media speculation, the Company advises that discussions remain at an early stage with due diligence having commenced in recent days.
IGO will progress due diligence over coming weeks, however there is no certainty that a definitive transaction will result once this period of diligence is complete.
IGO is not aware of any other matter requiring disclosure under the ASX listing rules and confirms it is in compliance with ASX Listing Rule 3.1. This announcement is authorised for release to the ASX by the IGO Board of Directors.

 DYOR

 i hold WSA , FMG and PAN

 this could get really complicated here  , for example  if a scrip component offered would FMG use this as a toehold into  IGO  

 might be worth watching several related companies in this


----------



## rederob (18 October 2021)

WSA's renko style chart pre-2008 mining boom looks more like a Mr Squiggle drawing on steroids:





Although not drawn on the above chart for WSA, next level of resistance is at $2.70.

We know LME's nickel inventories are depleting at around 1K tonnes a day, so with almost 100k available in their warehouses supply won't become immediately tight:




If the pace of drawdowns increases then I expect nickel to break its earlier peak this year which, in turn, will prop up WSA and maintain its upward trend.  Production-wise WSA's output is expected to be relatively stable until FY27, so aside from metal price upside, it's a long wait for WSA to return to its glory days.


----------



## divs4ever (7 December 2021)

RESPONSE TO MEDIA SPECULATION – WESTERN AREAS

IGO Limited (ASX:IGO) (“IGO” or “the Company”) notes recent media speculation regarding discussions between IGO and Western Areas Limited (“WSA”) regarding a potential change of control transaction. While IGO does not comment on media speculation, the Company confirms that discussions and due diligence are continuing.
 There is no certainty that a definitive transaction will result once this period of diligence is complete. IGO is not aware of any other matter requiring disclosure under the ASX listing rules and confirms it is in compliance with ASX Listing Rule 3.1. This announcement is authorised for release to the ASX by Peter Bradford, CEO & Managing Director.

DYOR

i hold WSA

 interesting wording  ..  going for a controlling interest rather than a 100% ownership  , perhaps ??

 i guess time will tell


----------



## sptrawler (7 December 2021)

divs4ever said:


> RESPONSE TO MEDIA SPECULATION – WESTERN AREAS
> 
> IGO Limited (ASX:IGO) (“IGO” or “the Company”) notes recent media speculation regarding discussions between IGO and Western Areas Limited (“WSA”) regarding a potential change of control transaction. While IGO does not comment on media speculation, the Company confirms that discussions and due diligence are continuing.
> There is no certainty that a definitive transaction will result once this period of diligence is complete. IGO is not aware of any other matter requiring disclosure under the ASX listing rules and confirms it is in compliance with ASX Listing Rule 3.1. This announcement is authorised for release to the ASX by Peter Bradford, CEO & Managing Director.
> ...



That would be a hell of a consolidation of WA's nickel assets.


----------



## divs4ever (7 December 2021)

well to my estimation  the mining cycle is in the consolidation  phase  , ( despite the appearance of a current super-cycle )

 since Twiggy has a stake in WSA (  just over 5% ,the last i heard )   , i wonder if there is a chance of a IGO/FMG JV on the table 

 ( and last i heard  WSA has a 19.9% stake in PAN to boot )

 so yes it could be  , but would a regulator step in for a look-see  ??


----------



## sptrawler (7 December 2021)

divs4ever said:


> well to my estimation  the mining cycle is in the consolidation  phase  , ( despite the appearance of a current super-cycle )
> 
> since Twiggy has a stake in WSA (  just over 5% ,the last i heard )   , i wonder if there is a chance of a IGO/FMG JV on the table
> 
> ...



Add to that the IGO lithium hydroxide plant at Kwinana and BHP's new high purity nickel sulphate plant at Kwinana, put FFI money in the mix and who knows where this could go.
May be a lot of speculation, but a lot of ducks appear to be lining up IMO.


----------



## divs4ever (7 December 2021)

as long as a flock of black swans don't ruin the parade 

 cheers


----------



## Dona Ferentes (16 December 2021)

as per ..... Shares in nickel miner Western Areas have raced ahead of the IGO Group’s endorsed offer price as investors bet Andrew Forrest or BHP could lob a rival bid.

$3.42  ... and has been trading 3.36 to 3.44 during the day. 



> Andrew Forrest’s private company Wyloo lifted its stake in Western Areas to 6.29 per cent earlier this month and declined to comment on IGO’s $3.36 per share offer, which values Wyloo’s stake in Western Areas at $67.9 million.



and BHP could argy-bargy their way in to discussions, via the side door (as Wyloo and BHP are in a tussle for Noront Resources)


----------



## Tyre Kicker (16 December 2021)

IGO and WSA seem very happy to get this done. I was hoping for a much better deal as a holder of WSA. Not sure why the WSA board is so keen to take this offer??


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## The Triangle (27 December 2021)

Tyre Kicker said:


> IGO and WSA seem very happy to get this done. I was hoping for a much better deal as a holder of WSA. Not sure why the WSA board is so keen to take this offer??



You ask a very good question.

I've been saying for years this consolidation was and had to happen.  For IGO it's about dick swinging rights in Perth and growing the market cap while they are overvalued.   For WSA....well have have you looked at the past decade of performance in the share price of WSA?   Last few years have been cost increases and dropping production, and they currently spending 300+ million building a new mine - which is actually an old mine that Glencore mothballed.  By the time they reach full production, get through likely cost and schedule over-runs this nickel boom may very well have faded again.   PAN in a way are doing the exact same thing - restarting a mine they themselves mothballed twice or three times?   So there is considerable risk to WSA - one is that their current project fails to deliver, and second is that their investment in PAN fails if PAN fail to deliver. 

This is an out for WSA shareholders and board that they likely would never of had... 

Why any shareholders invest in IGO at these prices is beyond me.  I definitely see a capital raising happening 'to strengthen the balance sheet' or 'fund growth'


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## divs4ever (17 February 2022)

IGO SECURES WYLOO COMMITMENT TO SUPPORT ANNOUNCED SCHEME OF ARRANGEMENT TO ACQUIRE WESTERN AREAS

IGO Limited (IGO or the Company) (ASX:IGO) is pleased to announce that Wyloo Consolidated Investments Pty Ltd (Wyloo Consolidated) has undertaken to IGO to vote Wyloo Consolidated’s 31,509,769 shares (representing a 9.8% interest) in Western Areas Limited (Western Areas) in support of the Western Areas board recommended scheme of arrangement between IGO and Western Areas (the Scheme), subject to there being no superior proposal for Western Areas that is unmatched by IGO and the independent expert concluding (and continuing to conclude) that the Scheme is in the best interests of Western Areas shareholders.
 Subject to the same conditions, Wyloo Consolidated has also committed to a standstill such that it will not acquire or dispose of any Western Areas shares other than pursuant to the implementation of the Scheme.
The Scheme, which was announced on 16 December 2021 and remains subject to customary Court and shareholder approvals, is expected to be completed by early May 2022. Key elements are as follows:
• IGO to acquire Western Areas for A$3.36 per share for cash consideration
• The Scheme is supported by and has been recommended to Western Areas shareholders by the Western Areas Board of Directors (in the absence of a superior proposal and subject to the independent expert concluding (and continuing to conclude) that the Scheme is in the best interests of Western Areas shareholders)
• The Scheme is now independently supported by each of Wyloo Consolidated and Perpetual Limited, in the absence of a superior proposal, and subject to the other conditions referred to above in respect to Wyloo Consolidated's undertaking and those in Perpetual's voting intention statement (see IGO’s announcement of 16 December 2021 for details).
 These independently held shareholdings, when aggregated, represent 24.5% of Western Areas
• IGO is funding the A$1.1 billion transaction with a combination of approximately A$900 million seniorsecured debt facility and existing cash reserves.
Separately, IGO and Wyloo Metals Pty Ltd (Wyloo Metals) have entered into an agreement to jointly evaluate opportunities for nickel downstream processing in Australia. The first stage of this is a study, which is expected to take approximately two years and will be funded 70:30 by IGO and Wyloo Metals respectively.
 Following the conclusion of the study, and subject to the parties making a final investment decision, the parties would then form a 70:30 joint venture of IGO and Wyloo Metals respectively to construct and operate a nickel downstream processing facility.
IGO’s Managing Director and CEO, Peter Bradford, commented: “Our transaction to acquire Western Areas is ‘on strategy’ and a ‘sensible consolidation of Western Australian nickel production assets’.
 The transaction delivers price certainty to Western Areas shareholders and is accretive to IGO shareholders.
 We are therefore pleased to have secured Wyloo Consolidated’s support for the Scheme of Arrangement. “Looking forward, our agreement with Wyloo Metals to investigate and, if economically feasible, advance development of a downstream nickel processing facility represents a great opportunity to progress Australia’s relevance in the battery metals supply chain. 
IGO and Wyloo Metals have each had an aspiration to evaluate the potential for downstream nickel processing in Australia and our joint initiative is a step towards realising the ambitions of both companies.”

This announcement is authorised for release to the ASX by Peter Bradford, Managing Director and CEO.

 DYOR

 i hold WSA ( and FMG )

 looks like i will crystallize a loss here 

 i wonder what happens to the WSA stake in PAN ( i hold PAN as well )


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## rederob (24 March 2022)

Where will IGO go next with their $3.36 takeover offer:




The so called Expert Panel needs a swift kick up the behind if they think $3.36 now represents fair value.
About the only time it did was when IGO and WSA had their first discussions last year.
Even then it was abundantly apparent to blind Freddy/Frederica that nickel prices were rising firmly and supply was severely constrained.
Here's nickels latest price chart:


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## rederob (27 March 2022)

I originally posted this as a reply to @sptrawler in the Nickel thread:

... yes, at 1% nickel WSA will not be as profitable as previously. However, its *contained nickel* pipeline gives it a long life cycle and over a decade of further exploration to add to its resource base:





IGO's offer was never generous as it barely incorporated the hundreds of millions WSA already spent to get to its new growth pipelines, *and *about $150 million in cash reserves (ie., about 45cps).


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## divs4ever (5 April 2022)

UPDATE – WESTERN AREAS SCHEME OF ARRANGEMENT IGO Limited (IGO or the Company) (ASX:IGO) wishes to provide an update in relation to the proposed acquisition of Western Areas Limited (Western Areas) via a board recommended scheme of arrangement as announced to the ASX on 16 December 2021 (Scheme). IGO notes today’s announcement by Western Areas requesting a trading halt.
IGO’s understanding of the primary reason for this trading halt is that the Independent Expert engaged by Western Areas has concluded in its draft Independent Expert’s Report (IER), which IGO has not sighted, that the Scheme is neither fair nor reasonable to Western Areas shareholders and is therefore not in the best interests of Western Areas shareholders and, as a result, the Board of Western Areas intends, based on the terms of the current Scheme, to adversely change its recommendation to vote in favour of the Scheme and terminate the Scheme Implementation Deed with IGO.
IGO will consider all options with respect to the Scheme once the draft IER is received and reviewed. However, there can be no guarantee that the Scheme will proceed. As previously stated, IGO’s valuation of Western Areas and the proposed Scheme consideration of A$3.36 in cash per share were based on IGO’s long term view of the nickel market fundamentals and price. Despite recent volatility in the nickel price, IGO’s long term view on the nickel price has not materially changed.
IGO remains focused on pursuing growth opportunities that deliver value to IGO’s shareholders. While it will assess all options available with respect to the Scheme, IGO will remain disciplined in the execution of all merger and acquisition activity. IGO is advised by Macquarie Capital (Australia) Limited as financial adviser and Herbert Smith Freehills as legal adviser.


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## rederob (5 April 2022)

divs4ever said:


> UPDATE – WESTERN AREAS SCHEME OF ARRANGEMENT IGO Limited (IGO or the Company) (ASX:IGO) wishes to provide an update ....
> IGO’s understanding of the primary reason for this trading halt is that *the Independent Expert engaged by Western Areas has concluded in its draft Independent Expert’s Report (IER), which IGO has not sighted, that the Scheme is neither fair nor reasonable to Western Areas* shareholders and is therefore not in the best interests of Western Areas shareholders and, as a result, the Board of Western Areas intends, based on the terms of the current Scheme, to adversely change its recommendation to vote in favour of the Scheme and terminate the Scheme Implementation Deed with IGO.



It appears the Independent Expert has come to its senses!
This was never rocket science so common sense seems to have prevailed after all.
For a time it looked like Twiggy was going to intervene and WSA ran above IGO's offer price until his announcement on 17 Feb:




Given today's events it looks very unlikely that WSA shareholders would ever approve of IGO's bid.  For those who speculated on this outcome, well done as some good gains are in the wind.


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## Tyre Kicker (5 April 2022)

Wow, what a surprise hey!

Serious concerns around the WSA management not understanding the demand that was coming  for nickel with the EV revolution.

Simply astounding.


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## Sean K (5 April 2022)

I'm happy for IGO to pay overs for this. The scale will make it a very significant asset and be able to sweep up the juniors who don't have the balance sheet for development. As long as they're not sweeping up the trash.


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## divs4ever (7 April 2022)

Western Areas Limited (ASX: WSA) – Request for voluntary suspension

Western Areas Limited (Company) refers to its request dated 5 April 2022 for a trading halt in its ordinary shares.
On 5 April 2022, ASX implemented a trading halt which will end at the commencement of trading on Thursday, 7
April 2022.
Pursuant to ASX Listing Rule 17.2, Western Areas Limited (Company) requests that its ordinary shares be
suspended from quotation from the expiry of the current trading halt.
For the purposes of ASX Listing Rule 17.2, the Company provides the following information:
(a) Purpose for the suspension
The suspension is requested pending an announcement by the Company providing an update as to the
status of the proposed acquisition by IGO Limited (IGO) of all of the fully paid ordinary shares in the Company
by way of a scheme of arrangement under Part 5.1 of the Corporations Act 2001 (Cth) for a cash amount of
$3.36 cash per Western Areas share (Scheme). Importantly, the suspension period will facilitate the
Company and IGO being able to complete the iterative consultation process regarding the Scheme, which
consultation process is required under the Scheme Implementation Deed (SID) between the Company, IGO
and IGO Nickel Holdings Pty Ltd (IGO Nickel).
In accordance with ASX Listing Rules Guidance Note 16: Trading Halts and Voluntary Suspensions, the
suspension is necessary to manage the Company's continuous disclosure obligations under ASX Listing
Rules 3.1-3.1B during the consultation process and is appropriate given the Company anticipates that it may
not be able to make an announcement to satisfy its continuous disclosure obligations until the conclusion of
the consultation process required under the SID. See below under the heading "Further information" for
additional details relating to the consultation process.
(b) Duration of the suspension
The Company requests that the suspension remain in place until the earlier of the Company releasing an
announcement in relation to the Scheme and commencement of trading on Wednesday, 13 April 2022.
(c) No reason
The Company is not aware of any reason the suspension should not be granted

DYOR

i hold WSA


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## rederob (7 April 2022)

divs4ever said:


> Western Areas Limited (ASX: WSA) – Request for voluntary suspension
> 
> Western Areas Limited (Company) refers to its request dated 5 April 2022 for a trading halt in its ordinary shares.
> On 5 April 2022, ASX implemented a trading halt which will end at the commencement of trading on Thursday, 7
> ...



You missed the important part, "d":

*(d) Further information *​As disclosed by IGO to ASX on 5 April 2022, the Company has received a draft Independent Expert's Report from its appointed Independent Expert, KPMG Financial Advisory Services (Australia) Pty Ltd (Independent Expert or KPMG). The Company confirms that the draft* Independent Expert's Report from KPMG contains a draft opinion that the proposed Scheme is not fair and not reasonable and therefore is not in the best interest of Western Areas shareholders.* Having regard to the opinion of the Independent Expert and the requirements of the SID, *the Western Areas Board has determined to withdraw its recommendation *that Western Areas shareholders (other than Excluded Shareholders) vote in favour of the Scheme.​​What we should learn is what the new valuation per share is calculated at by the Independent Expert.  Clearly it's a lot more than the bid.  Nevertheless, I hope IGO does not make a further offer and WSA lets market forces prevail  With nickel sticking nicely above $30k for most of the past month I cannot see less than $5/share being fair (given that PAN - which WSA has a 20% stake in) has risen about 50% since IGO made the WSA offer.


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## divs4ever (7 April 2022)

oh  , joy oh joy   i am only down 25%  down on PAN and down 36% on WSA

 while i am up 330% on MCR 

 there is a BIG difference between the nickel miners


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## rederob (11 April 2022)

A *bone *was thrown and landed here:





I read a report over the weekend valuing WSA in the mid $4 range, from a long term perspective.
I am pretty disgusted by the WSA board not letting market forces take WSA to where investors see its value lying, rather than being dictated to on what they think is "fair and reasonable".


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## rederob (11 April 2022)

I sent this off to WSA a while ago:

*I am writing to advise my disgust with Western Areas' Board and their continuing cosying up to IGO at the expense of shareholders.*​​*I will be lobbying other interested shareholders to join me in a class action against Western Areas and its incompetence in agreeing to a takeover when real industry experts - unlike KPMG - presently value the company considerably more than $4/share.  It is well established that the nickel market has major supply problems, and these are not likely to improve as the incrementally increasing demand from the battery EV sector in particular has at least another decade to run.*​​*The weight of evidence against KPMG's present opinion is exceptionally strong and should not be difficult to prove, especially seeing they badly botched their first effort.  Additionally, while it was apparent that the market never thought IGO's initial offer was fair, and they themselves said they would not change it, they in fact have.   The course of events has an element of "opportunism" running through.*​​*A competent Board would not have been so eager to rush into another offer price with IGO and, instead, let WSA's shares trade for several months so that the market itself could guide a more fair and reasonable valuation.*​​*Individual and long term shareholders are constantly disappointed when they see Directors always proposing their fees are increased or that other bonus arrangements are approved despite poor share price performance.  In this case it appears we are being sold down the toilet when, instead, a market directed outcome would put an end to share price uncertainty and negate the need for me to take further action.*​​If you are of the same view, I welcome a message from you but won't be seeking anything more at this stage.  I will be spending some time looking for cases where shareholders have taken similar actions to see what traction is available.


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## rederob (28 April 2022)

Let's see what the Independent Expert says this time:




Hmmm, we are being sold another crock!


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## System (23 June 2022)

On June 21st, 2022, Western Areas Limited (WSA) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between WSA and its shareholders in connection with the acquisition of all the issued capital in WSA by IGO Nickel Holdings Limited (a wholly owned subsidiary of IGO Limited).
.


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