WSA - Western Areas

[divs4ever]

well i won't be tipping in more cash , so they can save postage there

BTW how many cap. raises is that now , considering it has been in full production since i bought in ( even MCR and PAN resorted to moth-balling mines , for a while )

 

[sptrawler]

well i won't be tipping in more cash , so they can save postage there

BTW how many cap. raises is that now , considering it has been in full production since i bought in ( even MCR and PAN resorted to moth-balling mines , for a while )

Yes WSA, I haven't been following them since we discussed on here a couple of years back that their ore recovery cost was increasing as the % of contained nickel in ore was falling, unless they found higher yield ore they were struggling.
like I said I haven't been following them, so I don't know what their recovery rate is now.
Really nickel is a boom and bust commodity, unless you have good infrastructure and or a good ore body, it is hard work.
Just my opinion.

 

[The Triangle]

Yes WSA, I haven't been following them since we discussed on here a couple of years back that their ore recovery cost was increasing as the % of contained nickel in ore was falling, unless they found higher yield ore they were struggling.
like I said I haven't been following them, so I don't know what their recovery rate is now.
Really nickel is a boom and bust commodity, unless you have good infrastructure and or a good ore body, it is hard work.
Just my opinion.

Thought I would check up on WSA again myself. Refreshed this graph from last year... Looking at quarterly report from yesterday it's clear to see that their cost forecasting has continued to deteriorate. How many times will WSA change the goal posts on costs next FY?

I would stop bagging them out if their nickel production was also significantly higher than previous years - Fair enough - up the costs and increase production and improve total profits... but nickel production is also down. Nickel prices have saved this company. Can't wait to see annual numbers. Slightly difficult to reconcile capital spending based on quarterlies.

 

[rederob]

FY22 guidance out today:

WSA's production costs have risen mostly as a result of more lower grade ore in their processing mix.
On the positive side, the trend of rising nickel prices is very likely to continue well into the future.

WSA have more irons in the fire so annual production estimates are likely to be exceeded beyond 2025.
This is not a stock you would readily invest in unless you were certain nickel was going to hold above $20k/tonne going forward.

 

[divs4ever]

Western Areas Ltd (ASX: WSA, “Western Areas” or the “Company”) has noted media reports published by The Australian Financial Review in relation to a potential transaction involving Western Areas. Western Areas confirms that it is in preliminary discussions with IGO Limited in relation to a change of control proposal and the basis upon which engagement and due diligence between the parties could proceed. Given the preliminary stage of discussions, there can be no assurance whether any transaction will eventuate or what the terms and conditions of any such transaction might involve. Western Areas will continue to keep shareholders updated as appropriate.

DYOR

up 12% today

( but i am down 52% )

not a very popular stock here ( but i suppose that is reasonable for a continuous under-deliverer )

 

[The Triangle]

While IGO is insanely overvalued they should be using their hefty market cap to pounce on WSA and PAN.

 

[divs4ever]

i exited IGO after they sold the Tropicana interest , at a healthy profit , considering i was a holder for less than a year

so yes i agree on your perception of it being over-valued ,but surely they seem to be very aggressive

are they worried someone like MIN will beat them to all the tasty morsels

 

[rederob]

WSA are achieving good margins as prices remain elevated, warehouse inventories are low, and the outlook remains positive.

 

[sptrawler]

i exited IGO after they sold the Tropicana interest , at a healthy profit , considering i was a holder for less than a year

so yes i agree on your perception of it being over-valued ,but surely they seem to be very aggressive

are they worried someone like MIN will beat them to all the tasty morsels

IGO have rocketed since they bought into the Chinese lithium mine and nearly complete lithium processing plant at Kwinana, whether they can work well with Tianqi remains to be seen.
The market definitely liked the move, as can be seen by the share price and leveraging into more nickel may be the early stages of something bigger?

 

[divs4ever]

IGO have rocketed since they bought into the Chinese lithium mine and nearly complete lithium processing plant at Kwinana, whether they can work well with Tianqi remains to be seen.
The market definitely liked the move, as can be seen by the share price and leveraging into more nickel may be the early stages of something bigger?

but i am not convinced lithium is the way to go , i think somebody will come up with a better ( or cheaper ) solution

assuming EVs dominate personal transport in 2030 the demand will be HUGE , and China is likely to have a second monopoly ( via trade agreements with Afghanistan ) to go with the REE dominance



it the West is to compete it MUST cut production costs ( or make a superior product )

 

[sptrawler]

but i am not convinced lithium is the way to go , i think somebody will come up with a better ( or cheaper ) solution

assuming EVs dominate personal transport in 2030 the demand will be HUGE , and China is likely to have a second monopoly ( via trade agreements with Afghanistan ) to go with the REE dominance



it the West is to compete it MUST cut production costs ( or make a superior product )

I agree, batteries IMO are a stop gap, but they will require a huge amount of them before they go "hang on a minute, this is ridiculous".
As per usual it is all about timing.

 

[divs4ever]

time is something i might not have

 

[sptrawler]

time is something i might not have

We all have that problem, in varying degrees.

 

[So_Cynical]

AFR reporting that Andrew Forrest is interested with 5.28% - a bidding war would be lovely.

Andrew Forrest goes substantial in Western Areas

Friendless a few days ago, there’s now two suitors seemingly circling Western Areas.

www.afr.com

 

[rederob]

WSA's long term wedge formation was due for a breakout later this year to early next as the company has very good future prospects as the nickel market continues to underpin strong prices.

However a funny thing happened on the way to this forum:​

Western Areas (ASX:WSA) share price jumps 10% after Twiggy Forrest buys stake​

 

[divs4ever]

AFR reporting that Andrew Forrest is interested with 5.28% - a bidding war would be lovely.

Andrew Forrest goes substantial in Western Areas

Friendless a few days ago, there’s now two suitors seemingly circling Western Areas.

www.afr.com

since i bought some FMG this morning and have held IGO in the past ( and departed with a smile on my face )

a scrip component in any offer made , might be an extra temptation ( no fun when the predator is someone you dislike )

i guess time will tell , but i doubt FMG would fight had for WSA ( might fight a lot harder if IGO was the prize )

but you never know

surely Twiggy hasn't been watching me , and learning my 'side-door technique ' into increasing my holding in a share ( when a scrip component is on offer )

AHE/G ==> extra APE

TTS ==> extra TAH

and so on have used this tactic several times over the years ( depends on the mathematics of course )

 

[Tropico]

AFR reporting that Andrew Forrest is interested with 5.28% - a bidding war would be lovely.

Andrew Forrest goes substantial in Western Areas

Friendless a few days ago, there’s now two suitors seemingly circling Western Areas.

www.afr.com

He is changing allegiances, selling POS and buying WSA.
I think I have seen some other changes in substantial holdings for Twiggy, but just can't recall then at the moment.

 

[divs4ever]

Nickel Is Becoming a Battleground for Bets on Battery Future​

Nickel Is Becoming a Battleground for Bets on Battery Future

(Bloomberg) -- The race to supply automakers with nickel to power their batteries is pitting two of the biggest names in mining against each other. A company owned by Australian iron ore billionaire Andrew Forrest signaled its refusal to back down after a proposal to buy Canadian nickel...

au.finance.yahoo.com

just be careful
Australia has had a BIG nickel bubble before

( look up Poseidon Nickel [not the current ASX listed one ] on the web )

DYOR

 

[Miner]

IMVHO another ripoff spp. Price now below the spp price. Retail investors shouldn't lose as much.

The performance of the WSA share price has been a huge disappointment at a time of record nickel prices and the significant underlying demand for more nickel production.

With takeover out of the blue, this spp would now be attractive on the hindsight. I also did not subscribe to the SPP then

 

[divs4ever]

i didn't participate in the last SPP , but i got sucked in , in an earlier one

my best hope is a take-over that has a scrip component ( either IGO or FMG scrip would be perfectly acceptable )