WAF - West African Resources

[Sean K]

WAF being smashed the past few weeks along with others due to a gold peak and sell off I guess. Not sure if anything else is wrong here. Looks like an opportunity between 80-90c support. Might depend if gold pauses at $1800 ish support.

 

[Sean K]

WAF bouncing a little from that support zone on the back of a slight pause in POG decline I think.

But, there's something else smelling about this at the moment. Burkina Faso politics and security perhaps? It's just far enough north that the Islamist insurgencies around the place could be of concern. Plus, I think France might be starting to pull back their military, but that's just a guess.

 

[DrBourse]

Hi Miner…..

WAF is struggling to get past the $0.96c Trend Line, and the Linear regression Centre Line, then it has the Large Benchmark Candle Formation to contend with…..$1.10 will be the next barrier for WAF to clear….. BUT more likely WAF will fall to at least the $0.88c Bottom Benchmark Candle Line…..

ST Inds are Cr#p ,and TREND is DOWN…..Sellers have been in control for the last 8 trading days….

Then we look at the WAF FA….. They should be refered to as WOFTAM, not WAF FA…..

Sorry to be so Blunt, but that’s the way the cookie crumbles…..

The Trading View Analysts must know sumthin' us mere mortals don't know - Inside Info EH, surely not!

Will be interesting to see where WAF ends up.
Cheers..

DrB

 

[Miner]

Hi Miner…..

WAF is struggling to get past the $0.96c Trend Line, and the Linear regression Centre Line, then it has the Large Benchmark Candle Formation to contend with…..$1.10 will be the next barrier for WAF to clear….. BUT more likely WAF will fall to at least the $0.88c Bottom Benchmark Candle Line…..

ST Inds are Cr#p ,and TREND is DOWN…..Sellers have been in control for the last 8 trading days….
View attachment 155115

Then we look at the WAF FA….. They should be refered to as WOFTAM, not WAF FA…..

Sorry to be so Blunt, but that’s the way the cookie crumbles…..

The Trading View Analysts must know sumthin' us mere mortals don't know - Inside Info EH, surely not!
View attachment 155116
View attachment 155117
Will be interesting to see where WAF ends up.
Cheers..

DrB

Many thanks Dr B for your hard work and sharing with us, at my request.

 

[Sean K]

WAF bounced from the buy zone on the longer term chart.

Good article in The Fin on why it's trading at a discount to WA mines like RMS. Producing much more gold, making more money, but lower MC and gone opposite directions the past several months..

 

[finicky]

Lol - trying to stay alive is our main focus.
Look at those morally vacuous morons in the piccy - that's a government. It's like an L.A street gang has taken the reins.

Held (but reduced recently)

 

[Sean K]

Lol - trying to stay alive is our main focus.
Look at those morally vacuous morons in the piccy - that's a government. It's like an L.A street gang has taken the reins.

Held (but reduced recently)

WAF still bouncy bouncy off that support area.

MC at $1b doesn't seem too strenuous for what they're sitting on, producing and developing. More gold than DEG (MC $2.4b) and this is in production. There can't be that much country risk can there?

Can we do a peer comparison with PRU to see how it compares. Would that be fair?

Time for a nibble I think.

 

[Sean K]

Unless there's another coup it's hard to see how this doesn't just naturally find it's way back to it's highs in the coming months. With POG breaking out in most currencies these guys will be making a killing. 100% unhedged and clearing about $900 an ounce at current prices. Funding for Kiaka might be the only spanner. Looks like easy beer money to be buying close to support and cashing out below the red line. ?

 

[Sean K]

Struggling to hold on to that blue line. Been hovering below and can't poke it's nose back above.

Maybe drilling results from M5 UG will give it a boost. Should be out in the next 2 weeks.

Will certainly increase the UG component and extend LOM or throughput at Sanbrado.

 

[mullokintyre]

Announced today that they have got funding for the mine.

Interest at 5.3% plus the reference rate is not cheap.
Plus the 12.44USD royalty on the first 1.5 mill ounces gives sprott a nice little earner.
Would like to buy if the share price gets back above the 90 level.
Mick

 

[Sean K]

Announced today that they have got funding for the mine.
View attachment 158819
Interest at 5.3% plus the reference rate is not cheap.
Plus the 12.44USD royalty on the first 1.5 mill ounces gives sprott a nice little earner.
Would like to buy if the share price gets back above the 90 level.
Mick

Been waiting for this. Was only a matter of time I guess.

Can't believe this has a MC of about $800m with this much gold in the ground and moving to produce 400Koz pa. That's only 100k less than what DEG are going to start producing in a few years time and they have a MC of over $2b. Really, a 50% discount for West Africa? Should be double the current SP.

 

[Sean K]

Can't see any crocodiles in this.

The only potential positive surprise coming up may be the M5 drilling.

 

[Sean K]

Can't see any crocodiles in this.

The only potential positive surprise coming up may be the M5 drilling.

View attachment 160020

M5 drilling seems to be going very well and will be another underground operation. Will be interesting to see the numbers when they update the MRE with M5 UG Scoping Study due Q4. The purple and red squares in their cartoon below certainly indicates this will go UG, although they do caveat it with 'providing follow up drilling is positive'.

 

[Miner]

M5 drilling seems to be going very well and will be another underground operation. Will be interesting to see the numbers when they update the MRE with M5 UG Scoping Study due Q4. The purple and red squares in their cartoon below certainly indicates this will go UG, although they do caveat it with 'providing follow up drilling is positive'.


View attachment 161276View attachment 161277

View attachment 161278

@Sean K - did you look for any Piranha
Would WAF be really going as a miner / producer or just prepping for a takeover?
Do Hold and only real gem of my portfolio

 

[Sean K]

@Sean K - did you look for any Piranha
Would WAF be really going as a miner / producer or just prepping for a takeover?
Do Hold and only real gem of my portfolio

No Piranhas. There’s actually lots of Barramundi in this Ann. Looks like more potential in quite a few parts of the deposit.

The only crocodiles and piranhas here seem to be the regular WA coups that go off every 6 months or so.

 

[mullokintyre]

I bought some more today at 85.
Used the money I got from the dreadful ADH folly.
Mick

 

[finicky]

I'm looking to add back a sold portion but no encouragement from the chart that can see yet.
Bullish falling wedge over the last +1 year or a perilous head and shoulders - neckline 90c?
Looking, waiting for bullish candles or momentum clues; an astrological event perhaps or a shape in the bottom of my cup of Earl Grey.
It'd be cheap if not for the gun crazed larcenous government.

Held

MONTHLY

 

[Sean K]

I'm looking to add back a sold portion but no encouragement from the chart that can see yet.
Bullish falling wedge over the last +1 year or a perilous head and shoulders - neckline 90c?
Looking, waiting for bullish candles or momentum clues; an astrological event perhaps or a shape in the bottom of my cup of Earl Grey.
It'd be cheap if not for the gun crazed larcenous government.

Held

MONTHLY
View attachment 161297

Been in a range between 77 and 1.40 for some time. My target is to just get back to 1.40 and don parachute, depending on what else happens in the market. If POG breaks to ATHs at some stage then I won't be letting go of any goldies.

The Barramundis in the WAF pond are the depth extensions across all of M5. They seem to be indicating to us that each load along the entire strike could go UG, indicated by their pink shading and pointing out the higher grades at depth under the OPs.

 

[finicky]

Nice simple and clean report. Assuming similar production and similar unhedged gold price in H2 then I get expected NPAT of A$165m for 2023 (cal) which for $867m market cap stock currently gives a P/E of 5.3.
Cash and Gold of $191m but there's the debt for financing of second mine (Kiaka).
Pretty good compensation in the price for the ratchet African government and the Islamists.
Says expects to be a 400koz producer from, and including, 2025 with 'visibility' going out 10 years.
Expecting a good response today.

Held

 

[mullokintyre]

Nice simple and clean report. Assuming similar production and similar unhedged gold price in H2 then I get expected NPAT of A$165m for 2023 (cal) which for $867m market cap stock currently gives a P/E of 5.3.
Cash and Gold of $191m but there's the debt for financing of second mine (Kiaka).
Pretty good compensation in the price for the ratchet African government and the Islamists.
Says expects to be a 400koz producer from, and including, 2025 with 'visibility' going out 10 years.
Expecting a good response today.

Held

View attachment 161570

Thought it may have done a little better than 0.6% up on the open.
Mick