WAF - West African Resources

[Miner]

Trust market will kind to the investors today after the HY

 

[Sean K]

WAF seems to be benefitting from some general excitement in the WeAf region and has broken some significant resistance today. Wait and see if she follows through.

I've noticed a general increase in support from goldies on my watch list the past week or so with gains well ahead of the general market and POG. Could gold equities be leading POG out of it's downward trend?

 

[Miner]

With 10 pc increase on price today without any announcement, I am not complaining excepting why not I should have invested three times than what I did on that originally in last two years, guessing the expected DFS scheduled for Q4 21may have something - new exploration success to support the FS on upside ?

 

[mullokintyre]

I have gone against my normal trading strategies to buy into WAF today.
Its at its highest level, but the potential for the next two quarters production to exceed past levels is pretty good.
As long as POG holds above 2400 (or exceeds it!) should be a small risk medium reward outcome.
Maybe a 1.55 exit for me.
Mick

 

[mullokintyre]

Out at 1.45. Not convinced this particular gold run up will continue, expect a bit of a pull back after such a quick rise, so I took the profits for the week.
wish all my trades went this profitably in such a short time.
mick

 

[finicky]

Still holding - will ride out any correction or crash with this one; more succinctly, LT hold.
WAF, SSR, NST and RMS my favourite gold producer holds. Bit sorry never to have got on board NCM with its copper credits but was always attracted by some other goldie when spending.

 

[Sean K]

Out at 1.45. Not convinced this particular gold run up will continue, expect a bit of a pull back after such a quick rise, so I took the profits for the week.
wish all my trades went this profitably in such a short time.
mick

Well done Mick! Never a bad thing to make a killing in a short period of time.

I agree, I don't think gold stocks will continue to go parabolic, they've all run very hard in the past few weeks. But, I think we may have only just started a longer term move.

Looking forward to the next decent correction to support before the next move. Fingers crossed that actually happens, I'm 85% cash. Might be my undoing at this rate. eeeek

 

[aus_trader]

I've got a lower % in cash, so was careful not to tie it all up in LT gold stocks. I'll have no trading capital then...

Did manage to pick up a few SLR shares from the recent fall, so have a few Gold stocks, some under water but keeping LT.

 

[Miner]

Well done Mick! Never a bad thing to make a killing in a short period of time.

I agree, I don't think gold stocks will continue to go parabolic, they've all run very hard in the past few weeks. But, I think we may have only just started a longer term move.

Looking forward to the next decent correction to support before the next move. Fingers crossed that actually happens, I'm 85% cash. Might be my undoing at this rate. eeeek

85 pc cash .
I got only 25 pc.
Can I borrow from you to put on short selling of gambling shares ?
Lol.
Have a nice weekend.

 

[mullokintyre]

even after 40 years I find this trading caper tricky.
so many stocks, so little money.
I guess if it was easy we would all be rich.
mick

 

[mullokintyre]

Quarterly report out, excellent results, now cash flow positive, the markets response was to drop it back below 1.30.
So I promptly bought back in.
Nothing has changed apart from gold falling Friday Night, but we always knew that would happen courtesy of the PPT.
So will sit back and wait for the next gold run up.
Looking to get back into ALK below 90 and SLR below 1.55.
Mick

 

[Sean K]

Quarterly report out, excellent results, now cash flow positive, the markets response was to drop it back below 1.30.
So I promptly bought back in.
Nothing has changed apart from gold falling Friday Night, but we always knew that would happen courtesy of the PPT.
So will sit back and wait for the next gold run up.
Looking to get back into ALK below 90 and SLR below 1.55.
Mick

Some general healthy profit taking occurring. Will be more opportunities.

 

[Sean K]

This looks like a pretty handy acquisition. Bulk tonnage, low grade, open pit, conventional mill, they know the country, no coups this month. Why did B2Gold sell it? Hmmm

 

[Miner]

This looks like a pretty handy acquisition. Bulk tonnage, low grade, open pit, conventional mill, they know the country, no coups this month. Why did B2Gold sell it? Hmmm

View attachment 131909

Good question @Sean K - why B2G sold it.
Why Alkane demerged considering their SP since demerger of ASM never looked better .
I noticed capital raise for only $126.46 or so. Definitely it was a typo.
1 gm/ t processing cost would have been beyond their cash margin which WAF would average out.
just my guess.

 

[finicky]

That'll stuff the chart for a while I guess - was looking good for a continuation to me. However a chance for some to pick up shares at 1.25 probably. I like the bit about simple metallurgy, low strip and synergy with the Sanbrado operations. That might be the rationale for B2 selling since they can get a good and ready price (i.e worth more to WAF than to others) and B2 seem to have a few surplus projects. They might feel it's better to have the immediate cash in current circumstances plus the holding company gets a 3% royalty.

Monthly

 

[Miner]

Good question @Sean K - why B2G sold it.
Why Alkane demerged considering their SP since demerger of ASM never looked better .
I noticed capital raise for only $126.46 or so. Definitely it was a typo.
1 gm/ t processing cost would have been beyond their cash margin which WAF would average out.
just my guess.

Was in public transport and could not read the announcements in detail.
Some additional minor points to my earlier thread. Surely there will be significant discussions on this thread as WAF has rewarded many of the current holders I believe.

1. Reiterating the grade of gold in African region is deemed low.
2. About $50 M equity dilution as the payment will be made 50:50 equity and cash. It could be argued, cash is king but paying through equity is also cause disadvantage to the current share holders unless the project is really successful by the end of 2024.
3. Low geological confidence could go both ways. The grades could turn out to be better (hope so for the existing shareholders) .
4. Good to apply lessons learnt and using same contractors /consultants who delivered earlier project less than $20 M.
5. cash flow calculation is gold price at US $1700/oz. I would be conservative and as gold price goes lower than $1700/oz, the economics of the project will be reducing .
6. I am not negative on the acquisition. Gut feeling says with massive investment from most of the gold miners, by 2024, unless gold commands a reasonable price or at least maintain the current price, there could potentially be more gold in the market than demand .
7. On a personal level, I do intend to step into SPP but will also see market direction before putting my money into SPP. Historically my purchase price on WAF was almost 30 percent of current market price. So have confidence on WAF team.

 

[mullokintyre]

looks like punters are pretty keen to stump up more cash for this one.
Had no trouble in getting commitments from the big boys and sophs in raising the 126 mill in CR.
1.25 price may provide the floor when it resumes trading.
Having bought back in at 1.29 and seen it run up to 1.35, this will set me back a bit, as i was relying on the next two quarters to provide another exit.
Unfortunately, i suspect the majority of the quick and dirty trades has evaporated.
Mick

 

[Sean K]

looks like punters are pretty keen to stump up more cash for this one.
Had no trouble in getting commitments from the big boys and sophs in raising the 126 mill in CR.
1.25 price may provide the floor when it resumes trading.
Having bought back in at 1.29 and seen it run up to 1.35, this will set me back a bit, as i was relying on the next two quarters to provide another exit.
Unfortunately, i suspect the majority of the quick and dirty trades has evaporated.
Mick

It's low grade but bulk tonnage at surface, easy to mine. It looks positive to me when adding to Sanbrado and Toega - that they also bought of B2. Perhaps their intention is to just run the one mill and ship ore from Toega and Kiaka for long term feed? Are they creating too much country risk with operations in the one place?

Maybe they should buy TIE and PRU to spread the load.

 

[mullokintyre]

It's low grade but bulk tonnage at surface, easy to mine. It looks positive to me when adding to Sanbrado and Toega - that they also bought of B2. Perhaps their intention is to just run the one mill and ship ore from Toega and Kiaka for long term feed? Are they creating too much country risk with operations in the one place?

Maybe they should buy TIE and PRU to spread the load.

problem is I already have a few low grade bulk tonnage mines in Oz. Slow and steady is ok if you are looking at long term holdings.
Market is far too volatile for me to consider many of these.
Mick

 

[mullokintyre]

Well, given the price action in Gold and WAF , the 1.25 SPP will be happily taken up I expect, given todays price of 1.30.
May well be over subscribed.
Will put in my application more in hope than expectations of getting 30k worth of shares.
Mick