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WPG - WPG Resources

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whizz21

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I'd be interested to find out what people think of this upcoming IPO from Western Plains Gold?
 
WPG - Western Plains Resources

Western Plains Resources (WPG) is a Gold Mining Company ( formerly Western Plains Gold ) that has received shareholders approval to move into Iron Ore Mining.

http://www.westernplainsgold.com.au

WPG has acquired Southern Iron Pty., after a share issue at 20 cents per share quite recently. Southern Iron acquired, a short time before being acquired themselves, the former tenements of S.A.S.E., a 90% owned subsiduary of Felix Resources (FLX); Tenements RL 103 ( Peculiar Knob) and EL3196 (Hawks Nest), in South Australia. They paid $750,000 plus royalties ( no mention of the royalties by WPG., or by WPG or FLX as to what percentage they are ) plus a 10% interest in Southern Iron, that FLX say is now worth $450,000 ( Whether this interest has been converted into WPG shares or not isn't quite clear ).

http://www.asx.com.au/asxpdf/20061027/pdf/3z7hy6dnzhqg4.pdf

http://www.asx.com.au/asxpdf/20061019/pdf/3z28d6vn1c0p7.pdf
 
Re: WPG - Western Plains Resources

A little bit of a belated lift to 25 cents from 18 cents and now back a little to 22.5 cents. The purchase of Felix Resources Iron Ore Tenements are taken very seriously by WPG and they expect production of 2 mtpa by early 2008.
 
Re: WPG - Western Plains Resources

WPG are now heavy into Iron Ore production, going great guns that is. Now trading around 27 cents, well up on their recent lows. Western Plains Resources have good prospects as they move towards Iron Ore production early in 2008.

Their Hawks Nest Tenement holds about 800 million tonnes of iron ore, that varies between low and high grade.
First production will be from their Peculiar Knob tenement that is set for production of 2mtpa - starting early 2008 - for the next 9 years.
 
Re: WPG - Western Plains Resources

Has WPG now got the Felix Resources ( FLX ) factor. Why? Well, they have bought a chunky iron ore reserve out there in South Australia called Hawks Nest, along with smaller high grade tenements, such as Peculiar Knob. So far, the area is known to have around 800 million tonnes of iron ore from low to high grade. Mining is set to start early in 2008 and reaching 2 mtpa just from the small Peculiar Knob reserve. MGX just closed an iron ore pricing deal up 9.5% for 2007 and HOPEFULLY, all augers well, for this gold miner become iron ore specialist by means of a vertical learning curve.

S.A.S.E. retains a royalty interest in iron ore sold. S.A.S.E. is owned 90% by Felix Resources and Ausmelt ( AET ) have a 5% interest. FLX own an interest in WPG through their sale interest in Southern Iron via the WPG takeover of the latter.
 
Re: WPG - Western Plains Resources

I seem to be the only person on ASF to be in this stock, and why should you be indeed, as you'r all making a fortune elsewhere.

Well, WPG had a rights issue not long ago priced at 20 cents when they bought out Southern Iron, and now the stock trades at 27.5 cents this morning.

There are gold and other assets but WPG are now concentrating on producing 2 tonnes of High Grade iron ore from their tenement, Peculiar Knob.

May not be in the high flyer mode, but it is worth running your slide rule over this one.
 
Re: WPG - Western Plains Resources

Radio interview with WPG's Executive Chairman, Mr Bob Duffin, about their progress at the high grade, iron ore deposit at Peculiar Knob: http://www.brr.com.au/event/wpg/160/18128

Not a potential Breakout stock are WPG, but should continue to improve on their iron ore endeavors. They have about 800 million tonnes of iron ore at Hawks Nest, in addition, at varying grades.
 
Re: WPG - Western Plains Resources

WPG have opened at 29 cents this morning and continue well above the price at the takeover of Southern Coal Pty., and the purchase of Hawks Nest and Peculiar Knob, Iron Ore Tenements.

The Iron Ore Tenement at Peculiar Knob will give WPG, 2mtpa of high grade iron ore production for a minimum of 7 years. The Hawks Nest tenement could keep them busy for another 400 years.
 
Re: WPG - Western Plains Resources

WPG have hit 34 cents, up 5 cents on the week, in what is now a strong upward movement. The Iron Ore interests have pushed them on up, and that's not the only factor in this interesting gold come iron ore stock.
 
Re: WPG - Western Plains Resources

WPG are continuing to pull away from a 12 month trend. Up 3 cents at 37 cents this morning. Expectations of an announcement soon on the results of further exploration at the High Grade, Iron Ore Tenement, at Peculiar Knob.
 
Re: WPG - Western Plains Resources

WPG are still a fair bit away from production at their Peculiar Knob mine and although everything is set fair, the time has come to exit this one whilst the 55% profit remains. Good Luck.
 
Re: WPG - Western Plains Resources

I sold out far too early on this stock and still regret doing so, missed a flyer. WPG have their second tranche of funding in place and are soon to develop their first iron ore tenement, at Peculiar Knob. $1.29 was paid and the funder must be wondering a bit as Western Plains reach 85 cents. Worth watching, imho.
 
Re: WPG - Western Plains Resources

Western Plains Resources are recovering strongly from their low point and have enough cash to develop their Peculiar Knob tenement. Production is due to start by the middle of 2008.

WPG have further iron ore interests at their 800 million tonne tenements at Hawks Nest where low grade iron ore is inter-dispersed by very many high grade pods similar to Peculiar Knob, at Sequoia, Kestrel, Buzzard and Kite.
 
Re: WPG - Western Plains Resources

WPG have reached $1.38 this morning as the 19mt high grade iron ore deposit at Peculiar Knob moves closer to development.

The lower grade iron ore deposits at Buzzard and Kestrel have an indicated reserve of 789mt.
 
Re: WPG - Western Plains Resources

Onwards and upwards for WPG as they finish the week at $1.56.
The native title agreement over Peculiar Knob brings forward the development of the mine and 3mtpa production.
 
Re: WPG - Western Plains Resources

Hi Noirua, Thanks for keeping this thread alive. I did some number crunching this morning are these the type of figures you were thinking of?

Capex 108 constituting 70 mill debt and future share issue 20 mill @ $1.5

Sales/t 84.45AUD FOB Whyalla (75USD/t 88.8AUD/USD)
OPex/t 55.32

OPmargin/t 29.13
2.9mtproduction

Op profit 84.47 million
interest 7.00 million
compOH 10.00
Depn 10.00
Tax 17.00

NPAT 40.million
FWD EPS 36.3cents/share
77million issued+13million options+ 20 million new issue

I haven't been following it so I may have missed something but on first glance it looks very promising.
Icharus
 
Re: WPG - Western Plains Resources

Icharus, I think the earnings numbers you have used are low

In the BFS WPG have used $US130 for fines and $US105 for fines in the early years.

I was also thinking that WPG was going to debt fund the development but may need to do the capital raising you have included to fund a share of the project

I get EPS around 80c based on 3mts

regards

Peter
 
Re: WPG - Western Plains Resources

This stock in 7 months has gone up 240% i kick myself for being stopped out around the 45cent mark, general upward trend check it out.
 
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