WAF - West African Resources

[mullokintyre]

Pushing back to 1.36, where it was before the cap raising announcement.
decisions decisions.
I already have a sizeable chunk of WAF.
I am going to make a stab and say most holders will look for the full allocation at 1.25, so can reasonably expect a significant scale back.
But if by some fluke i got the full allocation, I would be way over my comfort level of exposure to the stock, so i really need to reduce some.
Do I take a small profit now, or wait for higher prices?
However, how many of those who get an allocation will want to take the stag profit, and will the price retract once the new shares are released? Decisions, decisions.
This trading business is not that easy.
Mick

 

[Sean K]

Pushing back to 1.36, where it was before the cap raising announcement.
decisions decisions.
I already have a sizeable chunk of WAF.
I am going to make a stab and say most holders will look for the full allocation at 1.25, so can reasonably expect a significant scale back.
But if by some fluke i got the full allocation, I would be way over my comfort level of exposure to the stock, so i really need to reduce some.
Do I take a small profit now, or wait for higher prices?
However, how many of those who get an allocation will want to take the stag profit, and will the price retract once the new shares are released? Decisions, decisions.
This trading business is not that easy.
Mick

Hard one. Could be some selling, all things being equal. Maybe you could be one of them? Even if you get half your allocation that could be a handy short term trade. However, if POG is breaking up, WAF will go with it. Like you say though if you're way overbalanced, but still want gold, pick something else to put the gains from WAF into that's not in the same post code. WAF's MC up to $1.3b now. Not sure how that compares to peers. Might still be cheap.

 

[finicky]

I might not take up the spp, when I do its usually to build my position, if arbitrage I always wait till after the allocation - sometimes a long wait, so not much good for a trading approach. Don't know why but not excited by WAF lately and I have enough of it for my purposes.

 

[mullokintyre]

Not surprisingly, the SPP for mugs like us was heavily oversubscribed and the bids will be scaled back, as they will not be extending the number of new shares issued.
Reckon I will be lucky to get 3,000 rathe than the 30k applied for.
So be it.
Crunched like almost everything else today.
mick

 

[qldfrog]

Not surprisingly, the SPP for mugs like us was heavily oversubscribed and the bids will be scaled back, as they will not be extending the number of new shares issued.
Reckon I will be lucky to get 3,000 rathe than the 30k applied for.
So be it.
Crunched like almost everything else today.
mick

Got a pitiful 800 so $1k
Pathetic
Sold the lot for a $50 profit?
Not even the petrol for the buggy or the last thai restaurant bill..and now have to wait and get the refund money

 

[mullokintyre]

I managed to get 2000 shares, maybe I got in quicker, or else I stumped up more cash in the first place.
At least the company will make some money on the overnight cash market while they wait to return it to u, which will improve their bottom line!
Mick

 

[qldfrog]

I managed to get 2000 shares, maybe I got in quicker, or else I stumped up more cash in the first place.
At least the company will make some money on the overnight cash market while they wait to return it to u, which will improve their bottom line!
Mick

From memory i asked 5k at least 3k...
Anyway, this is what it is but for such small amount i liquidate ASAP

 

[Sean K]

Gone through quite a bit of consolidation since breaking up in Sep 21. MC around $1.1b now so not sure what sort of upside there is? PRU MC is around $1.7b and ramping up to 500k oz pa, so double this. Makes TIE look relatively cheap with an MC at $330m producing over 220K pa by the end of the year. Perhaps the upside is just POG. Maybe too big to be taken over by anyone less than a major.

 

[Sean K]

Good result from WAF. M1 South is a rare load in West Africa. Impressive grades.

 

[mullokintyre]

Thought it might have got a bigger kick along from these results, even on a day when there is a sea of red.
Will keep holding for a while yet.
Mick

 

[Sean K]

Thought it might have got a bigger kick along from these results, even on a day when there is a sea of red.
Will keep holding for a while yet.
Mick

A fair amount of consolidation here. MC up around $1.3b. Targeting 400k oz pa down the track. Didn't realise that. Waiting for any significant correction to take a bite.

 

[Sean K]

Another day, another coup.

 

[mullokintyre]

A fair amount of consolidation here. MC up around $1.3b. Targeting 400k oz pa down the track. Didn't realise that. Waiting for any significant correction to take a bite.

Well, looks like we go that significant correction after the coup in Burkina Faso.
Will buy more despite the increased sovereign risk.
Mick

 

[Sean K]

Well, looks like we go that significant correction after the coup in Burkina Faso.
Will buy more despite the increased sovereign risk.
Mick

A few of the others have gone down in sympathy too. Should just be a blip. TIA.

 

[finicky]

 

[Sean K]

Is he reading ASF?

 

[Sean K]

WAF recovering well from the coup. Coups don't seem to matter much to miners in West Africa in the longer term. They take the wack and then just get up and keep going. Perhaps the region and country risks are always factored into their SPs. Might have been a good opportunity down around $1.

 

[Sean K]

WAF still been hammered by the coup. I don't think anything has changed in regard to Burkina Faso but the French have been pulling out of Mali, which may cause further problems on the NW border, but WAF are in the south.

Looks like good report out today too.

If you have risk tolerance to coups, this looks like a good opportunity to me.

 

[mullokintyre]

Yep, I have taken on some more.
Sometimees the risk reward scenario can be read in many way, I think once again the market has overreacted.
Mick

 

[qldfrog]

Yep, I have taken on some more.
Sometimees the risk reward scenario can be read in many way, I think once again the market has overreacted.
Mick

It's very daring, why taking risks when you can get gold producers which are not on a volcano..Hi Newcrest ...or in a desert area where lunatic religious zealots are in power while the French protection..operation Barkhane ..is ended.
Basically if all goes well for WAF, what's the extra profit vs a gold producer index?
Note:
i regularly own WAF due to systems, but do not own it on my gold heavy discretionary portfolio.
Can we do a check again in 12 months?