WPG - WPG Resources

[lazyfish]

Re: any thoughts

Hi gang, I just started looking at WPG, and I like to do some fundamental analyses to see if the coy is ok and then some technical to get in at the right time. So here is the little bit of research that Ive.
Let me state that Im no guru here ok these are my opinions only and please dont buy based on my research!!

Firstly the infrastructure is in place for this coy and thats a big plus for exploration coy's
well all but connection roads and haul rodes for the peculiar know and hawks nest!
Hawks nest is a joint venture with WISCO - CHINA which is a steel producer so they have a direct market for the ore.
There is quite an amount of hi grade magnetite which is I think above 53% fe.
3.3mtpa of direct shipped ore (DSO)
Market cap is $250m
They have 1billion tons of 2p reserves (probable)
3P reserves (possible) will be drilled immediately.

The things I like about this coy is most of the work to get this thing up and running is already done. The finance will be finalised in march I think?
Final approval of development and rehabilitation plans is pending in middle of march
Consrtuction starts in april
Sales begin at end of 2011.
The best thing about this coy is its resources are in Australia and it is politically stable
compared to coy's like sdl dml.
It has a rail link and port already built and theres not a lot of chance of being flooded compared to QLD and WA.

I think its a solid project and I think I want to be in before construction starts although not to soon before. If you want to know how much its worth I think the easiest way is to compare its resource reserves and proven reserves to other companies and compare their SP.

Anyway please do your own research

CHEERS

There is no question about the viability of Peculiar Knob, for it has already received approval (mining, defence access, native title) and WPG has awarded mining contract for the project. The main question is whether they can bring Hawk's Nest into production. Hawk's nest lie in the 'red zone' of WTF (Woomera Test Facility) and is partly on the flight path. It is a very big question whether they would allow the WISCO JV to go ahead. Upside from Hawk's nest include doubling the DSO resource to 36MT and a 569MT magnetite project (~30% Fe). The port situation is still bad in South Australia, with no deep sea port that can handle CAPE sized vessels. A transhipment operation would have to be used until Port Bonython is ready and that kills the margin pretty quickly. Having said all the negative things Peculiar Knob is a solid project, with low strip ratio, very low contaminant and very high grade. Finance has been finalised through the recent cap raising and detsche bank debt facility that should be more than sufficient to last through to production. I hold. DYOR

 

[RaymondJ]

Re: any thoughts

There is no question about the viability of Peculiar Knob, for it has already received approval (mining, defence access, native title) and WPG has awarded mining contract for the project. The main question is whether they can bring Hawk's Nest into production. Hawk's nest lie in the 'red zone' of WTF (Woomera Test Facility) and is partly on the flight path. It is a very big question whether they would allow the WISCO JV to go ahead. Upside from Hawk's nest include doubling the DSO resource to 36MT and a 569MT magnetite project (~30% Fe). The port situation is still bad in South Australia, with no deep sea port that can handle CAPE sized vessels. A transhipment operation would have to be used until Port Bonython is ready and that kills the margin pretty quickly. Having said all the negative things Peculiar Knob is a solid project, with low strip ratio, very low contaminant and very high grade. Finance has been finalised through the recent cap raising and detsche bank debt facility that should be more than sufficient to last through to production. I hold. DYOR

Thanks Lazyfish for the valuable information, yes I did forget to add the bit about the port. Isnt the JV partner undertading something to do with the construction of that?
Anyway I think this coy has a good future in the medium term. think the Woomera approval will be forthcomming, the Governments of Australia dont often knock back mining applications and the Indigenous are usually agreeable although this could be the Defence Department approval. Anyway Im going to get in on this stock in the next few days I think. This project is a lot safer than those in other countries such as Cameroon, West and Southern Africa. This problem in Egypt could very easily spread down that way, as if the country isnt unstable enough now.
Anyway I would appreciate any other information you have on this stock.

CHEERS

 

[tigerboi]

Re:i like this stock what are others thoughts?

I recently had another look at WPG & i like the way the company is going with everything
looking to be happening by the end of this year.
they have the cash & customers so im going to jump in for a reasonable amount.
what do others think about WPG'S progress?
i tried but i couldnt find anything negative about them...cheers..tb

 

[Boggo]

Re: i like this stock what are others thoughts?

what do others think about WPG'S progress?
i tried but i couldnt find anything negative about them...cheers..tb

From an EW charting perspective this was on my list as a candidate based on a weekly scan a few weeks ago but took a while to get going.
The software has picked the last few significant points accurately and places a theoretical minimum target of $1.115 on it based on the current pattern.

(click to expand)

 

[tigerboi]

boggo the hawke report has just been released giving the go ahead for mining in the woomera area,this has changed everything for WPG as it can now access a huge region...tb

 

[oldblue]

boggo the hawke report has just been released giving the go ahead for mining in the woomera area,this has changed everything for WPG as it can now access a huge region...tb

Hi tigerboi.

Do you have a link to this news?

WPG's presentation today said that this report hasn't been released publicly but that a favourable outcome is expected shortly.

 

[tigerboi]

Re: WPG - the hawke report takes the brakes off WPG Resources!!!

yep sure can...

http://www.minister.defence.gov.au/Smithtpl.cfm?CurrentId=11749

the full report is in a pdf on the defence site...tb

 

[oldblue]

Thanks, tb.

I recently bought a few WPG, largely as a result of researching the informed comments on this thread.

 

[Buckfont]

At last a light at the end of this long tunnel. The announcements due May/June will have no doubt solidify all the questioning that has abounded about govt regs etc.

With the large tenements IO and coal, I can`t wait. Have held since early 09.

 

[tigerboi]

Thanks, tb.

I recently bought a few WPG, largely as a result of researching the informed comments on this thread.

no probs,i had a look at WPG about 3 years ago & decided to wait & last month i was alerted
about them about to get all the go ahead,so i cashed up & took a seat at 75c which when you consider the IO & coal about to come on line imo sub $1.00 is a very good entry.
good luck...tb

 

[oldblue]

And here's WPG's own announcement.

http://asx.com.au/asxpdf/20110504/pdf/41yfzjytz3g945.pdf

 

[tigerboi]

WPG:Veritas report values WPG at $1.72-$2.44 for 3.3mt-5.0mt

veritas recommends a buy with a target of $1.72 for 3.3mt dso & $2.44 for 5mt which is a possibility that WPG will commence production of 5mt pa as they have capacity for 7mt out of the port.

WPG has a JV with wisco the 3rd largest steel mill in china plus 2 coal projects with jorc of 200mt+



see the report at:

http://www.wpgresources.com.au/pdf/veritas research report 9 may 2011.pdf

also here is a sky news interview with bob duffin ceo of WPG

 

[tigerboi]

final mine approval is expected next week & bigger trades are happening so expect WPG to punch thru the $1.00 by the end of this month.tb

 

[Gringotts Bank]

Small but perfectly shaped cup and handle, bullish break. 86 res. Waiting for fill.

 

[tigerboi]

final mine approval is expected next week & bigger trades are happening so expect WPG to punch thru the $1.00 by the end of this month.tb

here it is the anns that sends WPG on its way to 3.3mtpa...tb

WPG Resources Ltd (ASX:WPG) is pleased to advise that the South Australian
government has approved the Mining and Rehabilitation Program (MARP) for the
Company’s flagship DSO iron ore mine south east of Coober Pedy, and has also
approved the Company’s Development Application (DA) for the iron ore receival,
storage and export facility to be built at Port Pirie.
The approvals mean that WPG can now move to the project construction phase.
Site works at the mine and port will begin before the end of July. Sales are expected
to commence late in the current financial year.
WPG will spend some $170 million to bring the project into production. Contractors
engaged by WPG will spend an estimated additional $250 million on mobile plant
and equipment. Some 180 jobs will be created during the 10 month construction
phase. During the production phase, over 240 jobs will be created at the mine site
area, with an additional 60 jobs at Port Augusta and Port Pirie.
With a reserve grade of 63.2% iron, Peculiar Knob is Australia’s highest grade
undeveloped iron ore deposit. It will produce 3.3 mtpa of high grade iron ore fines for
a minimum of 6 years based on known resources and reserves. The
Commonwealth’s recent adoption of the recommendations in the Hawke Report that
mining and military activities can coexist in most areas of the Woomera Prohibited
Area paves the way for the development of the Buzzard DSO deposit at Hawks
Nest, which will extend the project’s life to more than 10 years.
WPG looks forward to developing this exciting and highly lucrative project. It will be
South Australia’s newest mine, and will transform the Company from explorer to
producer status. WPG thanks the South Australian government, all stakeholders and
shareholders for the encouragement and support given to it over the last few years.
8 July 2011

 

[oldblue]

Development of Buzzard iron ore deposit to be fast tracked, in parallel with Peculiar Knob.

http://asx.com.au/asxpdf/20110715/pdf/41zsgr30fvlzgd.pdf

 

[tigerboi]

Re: WPG emerging iron ore producer at 5mtpa.

WPG is now going to start up at 5mtpa & has just signed an offtake with chinese steel mill.looking very nice at around the 95c.
big players that were waiting for final approvals now look to be taking a seat...TB

 

[Buckfont]

Noice little bag of lollies from WPG today.

From the proposed sale of their iron ore assets, WPG intends to make a tax effective distribution of the bulk of the transaction proceeds by way of a capital return and a franked dividend.

The total distribution would be $1.05 / share, consisting of a capital return of $0.42c and a fully franked dividend of $0.63c, with an attaching franking credit of $0.27c.

Just gotta be voted on.

Noice

 

[kingink]

Hi guys,

Pretty new to the market.

Have been looking into WPG, does anyone think they will bounce back?

Take care

 

[kingink]

Woot,

Put a small ammount into this company just yesterday and they went up 20% today.

Good start for a noob investor...

The announcment today appears like they will be making some good progress with their mining projects again...

Let's see if they can't get closer to those old prices hahaha