Hi all (again)
Q2: Why would a stock trade at 2.0x NPV?
On slide 24 (WRN_Corporate_Presentation_Jan_2023.pdf)
"Enterprise value/project NPV (STUDY) BENCHMARKING
it appears they are tring to show how undervalued WRN is relative to peers.
I checked out Filo Mining under presentations (Filo Mining Corporate Presentation, December 2022)
On slide 3 & 14 & 16, they claim
4.4 Million oz Gold
147 Million oz silver
3.1 Billion lbs Copper
With a life of 13 years and NPV(8%) of 1.28 $B ( presume USD)
comparing this to WRN (M3-PN200352-Casino-Feasibility-Study-NI-43-101-Technical-Report_compressed.pdf)
pages 1 & 17
a. Gold – 6.95 million ounces
b. Silver – 36.09 million ounces
c. Copper – 4.27 billion pounds
d. Molybdenum – 346 million pounds
with a mine life of 27 years and
NPV pre-tax (8% discount, C$M) $3,473
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Filo Mining is trading at $ 24.29 CAD but appears to have
half the mine life and less resources.
Why is it trading at 2x NPV isn't this like buying $10 for $20?
is this based on discovery potential or prospecting on the long
term price assumptions? Doesn't WRN have equally as good discovery potential i.e. the anomaly etc.
If you compare the two is WRN really trading at such a discount
all because of permitting?
Can anyone explain the vast difference in pricing?