WMT - Western Metals

[jemma]

Can someone explain to me why under WMT options there are 3 lots of 50000 options expiring on 30th Nov 2007 at $5, $7 and $9. Isnt that a little ambitious to think that the share price will be up around those figures in 11 months????? Why would anyone bother to have options at that price.
Obviously they are never going to be exercised unless WMT is sitting on the biggest deposits of U in the history of mining. I understand the basics of how options work but this seems quite pointless to me.

Mick you are correct and there is also 2,072,990 options at $2.16 cents expiring 30/6/07 also the ones you mentioned. BUT there is 27,500,000 options at 1 cent expiring 30/12/07 so they are in the money big time.
I am sure they will be exercised.

 

[jemma]

Can someone explain to me why under WMT options there are 3 lots of 50000 options expiring on 30th Nov 2007 at $5, $7 and $9. Isnt that a little ambitious to think that the share price will be up around those figures in 11 months????? Why would anyone bother to have options at that price.
Obviously they are never going to be exercised unless WMT is sitting on the biggest deposits of U in the history of mining. I understand the basics of how options work but this seems quite pointless to me.

I guess 50,000 options is not much considering the 27 million odd are easily in the money, maybe a smoke screen to give the idea it is too hard to achieve whilst the 1 cent shares slip under the radar. Cannot see them ever being in the money except for a major development. Who knows I guess.

 

[dubiousinfo]

Can someone explain to me why under WMT options there are 3 lots of 50000 options expiring on 30th Nov 2007 at $5, $7 and $9. Isnt that a little ambitious to think that the share price will be up around those figures in 11 months????? Why would anyone bother to have options at that price.
Obviously they are never going to be exercised unless WMT is sitting on the biggest deposits of U in the history of mining. I understand the basics of how options work but this seems quite pointless to me.

In 2003 WMT were operating two mines, but base metal prices were very low and it got into trouble due to its level of debt. The company was suspended and placed in voluntary administration. Prior to being placed in administration the Managing Director was granted 3 lots of options, 5 mil @ 5c, 5 mil @ 7c and 5 mil @ 9c.

Throughout 2003 and part of 2004, the administrator sold off the mines and other assets and the funds were distributed to the creditors. They actually had some good tenements, 50% of Intec's Hellyer, MRE's Murrin Murrin.

Then in 2005 a capital raising was carried out. A total of 250 mil shares and 30 mil 1c opies were issued to raise $1.6 mil. New Directors were appointed and the company was released from administration and readmitted to official quotation on the ASX.

Prior to the capital raising, the company had around 1.5 bil shares on issue, so as part of the capital raising, there was a share consolidation of the the old existing shares on the basis of 100 to 1 to reduce this to 15 mil existing shares. So if someone was holding 100,000 shares from prior to the raising, they now had only 1,000 shares. In addition the old Managing Director's options were consolidated from 5 mil @ 5c, 5 mil @ 7c and 5 mil @ 9c to 50k @ $5.00, 50k @ $7.00 and 50k @ $9.00 respectively.

The $2.17 opies were old 2.17c opies held by note holders that were also consolidated at the time of the capital raising.

 

[Snakey]

In 2003 WMT were operating two mines, but base metal prices were very low and it got into trouble due to its level of debt. The company was suspended and placed in voluntary administration. Prior to being placed in administration the Managing Director was granted 3 lots of options, 5 mil @ 5c, 5 mil @ 7c and 5 mil @ 9c.

Throughout 2003 and part of 2004, the administrator sold off the mines and other assets and the funds were distributed to the creditors. They actually had some good tenements, 50% of Intec's Hellyer, MRE's Murrin Murrin.

Then in 2005 a capital raising was carried out. A total of 250 mil shares and 30 mil 1c opies were issued to raise $1.6 mil. New Directors were appointed and the company was released from administration and readmitted to official quotation on the ASX.

Prior to the capital raising, the company had around 1.5 bil shares on issue, so as part of the capital raising, there was a share consolidation of the the old existing shares on the basis of 100 to 1 to reduce this to 15 mil existing shares. So if someone was holding 100,000 shares from prior to the raising, they now had only 1,000 shares. In addition the old Managing Director's options were consolidated from 5 mil @ 5c, 5 mil @ 7c and 5 mil @ 9c to 50k @ $5.00, 50k @ $7.00 and 50k @ $9.00 respectively.

The $2.17 opies were old 2.17c opies held by note holders that were also consolidated at the time of the capital raising.

Very nice homework Im impressed

 

[Atomic5]

Well not the biggest deposit of U in the history of mining, but it has potential to be pretty big.

13000km is is a lot of drilling territory too. What I do not understand is why Deep Yellow DYL sold the Tanzanian tenements to URA (LSE:AIM), how WMT got on board, and why tenements next to the Henri anomaly were still available late September 2006 and able to be purchased by Sabre SBR (a micro cap with little cash flow).

I often wonder if Sabre SBR which is 80% owned by it's own Top 20 shareholders is not sitting on 300km² of 6% grade U, and if WMT is not doing all the drilling that will determine if it is in the end.

WMT drilling activity has seen SBRs shareprice go from 7c to 29cents since November, while SBR has done no drilling.

 

[jemma]

13000km is is a lot of drilling territory too. What I do not understand is why Deep Yellow DYL sold the Tanzanian tenements to URA (LSE:AIM), how WMT got on board, and why tenements next to the Henri anomaly were still available late September 2006 and able to be purchased by Sabre SBR (a micro cap with little cash flow).

I often wonder if Sabre SBR which is 80% owned by it's own Top 20 shareholders is not sitting on 300km² of 6% grade U, and if WMT is not doing all the drilling that will determine if it is in the end.

WMT drilling activity has seen SBRs shareprice go from 7c to 29cents since November, while SBR has done no drilling.

Dr Leon from DYL is also on the board and in top 20 of WMT so it seems he is just too busy making squillions in DYL to also manage this, so by selling a stake out to another great management team of WMT, he also wins concurrently.

By the way, I expect a strong move this week from WMT, buy signals have been triggered.

 

[krisbarry]

Can you discuss these buy signals, thanks

 

[nizar]

In 2003 WMT were operating two mines, but base metal prices were very low and it got into trouble due to its level of debt. The company was suspended and placed in voluntary administration. Prior to being placed in administration the Managing Director was granted 3 lots of options, 5 mil @ 5c, 5 mil @ 7c and 5 mil @ 9c.

Throughout 2003 and part of 2004, the administrator sold off the mines and other assets and the funds were distributed to the creditors. They actually had some good tenements, 50% of Intec's Hellyer, MRE's Murrin Murrin.

Then in 2005 a capital raising was carried out. A total of 250 mil shares and 30 mil 1c opies were issued to raise $1.6 mil. New Directors were appointed and the company was released from administration and readmitted to official quotation on the ASX.

Prior to the capital raising, the company had around 1.5 bil shares on issue, so as part of the capital raising, there was a share consolidation of the the old existing shares on the basis of 100 to 1 to reduce this to 15 mil existing shares. So if someone was holding 100,000 shares from prior to the raising, they now had only 1,000 shares. In addition the old Managing Director's options were consolidated from 5 mil @ 5c, 5 mil @ 7c and 5 mil @ 9c to 50k @ $5.00, 50k @ $7.00 and 50k @ $9.00 respectively.

The $2.17 opies were old 2.17c opies held by note holders that were also consolidated at the time of the capital raising.

Thats a good effort son, thanks for taking the time. Your a champion.

 

[nizar]

By the way, I expect a strong move this week from WMT, buy signals have been triggered.

The way it broke out from the 10c resistance, then pullback to the breakout point the following trading day, was textbook. Then the bounce on the next day was classical, even Stan (weinstein) the veteran, wouldve got excited!

 

[jemma]

Can you discuss these buy signals, thanks

MACD and DMI turning up, if they were turning down it would be heading into consolidation, BUT its behaviour means another leg up is very close (within days).

 

[mickqld]

In 2003 WMT were operating two mines, but base metal prices were very low and it got into trouble due to its level of debt. The company was suspended and placed in voluntary administration. Prior to being placed in administration the Managing Director was granted 3 lots of options, 5 mil @ 5c, 5 mil @ 7c and 5 mil @ 9c.

Throughout 2003 and part of 2004, the administrator sold off the mines and other assets and the funds were distributed to the creditors. They actually had some good tenements, 50% of Intec's Hellyer, MRE's Murrin Murrin.

Then in 2005 a capital raising was carried out. A total of 250 mil shares and 30 mil 1c opies were issued to raise $1.6 mil. New Directors were appointed and the company was released from administration and readmitted to official quotation on the ASX.

Prior to the capital raising, the company had around 1.5 bil shares on issue, so as part of the capital raising, there was a share consolidation of the the old existing shares on the basis of 100 to 1 to reduce this to 15 mil existing shares. So if someone was holding 100,000 shares from prior to the raising, they now had only 1,000 shares. In addition the old Managing Director's options were consolidated from 5 mil @ 5c, 5 mil @ 7c and 5 mil @ 9c to 50k @ $5.00, 50k @ $7.00 and 50k @ $9.00 respectively.

The $2.17 opies were old 2.17c opies held by note holders that were also consolidated at the time of the capital raising.

Thanks heaps Dubious great research there and you too Jemma. I have been through that reconstruction having had 28000 shares of WMT back in 2002 which ended up 280 shares. I lost only $6000 on that but have more than made that back over the last few months now, so happily, what goes around comes around with this stock anyway.

 

[michael_selway]

Thanks heaps Dubious great research there and you too Jemma. I have been through that reconstruction having had 28000 shares of WMT back in 2002 which ended up 280 shares. I lost only $6000 on that but have more than made that back over the last few months now, so happily ,what goes around comes around with this stock anyway.

Do you know why it went up to $130.00 in 1997?

thx

MS

 

[trader_10]

Hi MS,

Maybe you should contact Alan James Castleman....he will have a chat on the long run of Western....... he's an old soul there.....

 

[krisbarry]

Do you know why it went up to $130.00 in 1997?

thx

MS

Now thats an impressive spike...poor pity the people at the top who paied $130 a share. Just goes to show that no matter how much you pair per share there is no guarantee that your money will return you a profit.

Enron ring a bell?

 

[Brissydave]

Please note the post above mentioning the 100 to 1 consolidation .... the chart shows the stock SP at today's baseline .... the high in 97 was actually about $1.30 ... by 100 = $130

Then WMT was delisted and the entity you own today is all new, new board, new directors, the lot, just wearing the old "shell".

Cheers ... Dave

 

[bvbfan]

$130 was when they still owned lead and zinc mines (Mt Gordon)

Good old financial risk management tool called hedging, both currency and metals prices + a few production issues killed this one.

 

[Brissydave]

Historical Prices for WMT .... in cents, not dollars ...

WMT,"31 Jul 1997",129.9,132,129.9,132,3107
WMT,"01 Aug 1997",129.1,130,128,130,16906
WMT,"04 Aug 1997",130,130,126,130,1186
WMT,"05 Aug 1997",130,132,128,130,14064
WMT,"06 Aug 1997",132,133,130,130,3411
WMT,"07 Aug 1997",130,130,128,130,2016
WMT,"08 Aug 1997",130,132,130,132,2800
WMT,"11 Aug 1997",132.8,133,126,127,13634
WMT,"12 Aug 1997",127.2,130,127,128,2135
WMT,"13 Aug 1997",126.2,127,126,127,1923

WMT never traded at $130 ..... note previous posts regarding 100 to 1 consolidation, which is why some "historical" charts have trouble rendering the prices correctly.

Cheers ... Dave

 

[Fluffy]

15cents today, not bad eh Snakey? lol

 

[Snakey]

15cents today, not bad eh Snakey? lol

yes very nice rise and im glad i didnt wait till monday to re-enter
healthy rise too not too crazy
thats good imo
trees that grow too fast fall over in the first wind.
very happy with proceedings fluffy

 

[trader]

Might even run a bit more in the afternoon.