West High Yield (W.H.Y) Resources Ltd V.WHY

WHY Analysis & SP Target

[dmacd]

Facts to justify $4/sh Price Target within 6 Months: 

Phase 1a Mg Quarry Mine: 250 kt/yr (6 month operation) ... permit approval is close ... opex $30/t = $5M
$100/t sale price => $20M/a profit => NPV $100M pessimistic case starting summer 2023
$200/t sale price => $45M/a profit => NPV $270M expected case with ramp up summer 2022
$300/t sale price => 70M/a profit, NPV $400M higher case starting summer 2022
Risk factor = 1.0x once mining starts and ramps to capacity ($4/sh)
Risk factor = 0.7x once engineering is completed and contracts placed
Risk factor = 0.5x once permits received which implies Market Cap = $135M or $2/sh for the expected sales case (so this actually drives the current SP valuation near term)
Risk factor = 0.4x where we should be today for simple mining project with low risk akin to gravel quarry ($1..60/sh)

Phase 1b Gold Leaching Reclamation Project
Cost = once permit in hand EnvironGold carries the costs
$30M revenue with $6M net to WHY ... $5.5M NPV if discounted to current dollars (0.08/sh)

Phase 1c) Mg Pilot 20 tph
$20M Capex with $5M by WHY and $15M Other (based on preliminary agreements)
$6M/a ballpark net revenue = $30M NPV best estimate case if discounted to current dollars (full value is 0.45/sh and discounted for risk is would say a fair value is $.20/sh once approved and $0.10/sh pre-approved)

Phase 2a) Expansion of Mg Quarry Mine
Economics are basically Phase 1a x 4 since production is quadrupled, and realistically 2 to 3 years from revenue start
incremental NPV = $270M x 3 = $810M or $650M discounted to current dollars (roughly $8/sh)
So this will take WHY from $2/sh to $10/sh within 4 years if all goes to plan and we can avoid dilution. Other upsides probably address some dilution although I would not expect much once the mine starts up and we get past the current share raise. If I derisk using 0.2x factor pre environmental submission for gravel pit expansion implies say $1.50/sh for a current valuation. 

Phase 2b) Gold Mine on Midnight Property
Free ride here ... lets see how the drilling goes but the grades are extremely high from the holes drilled previously ... probably warrants $0.20/sh at the moment in my humble opinion .. . other gold mine prospects could be farmed out or added over time to grow the asset base and diversify revenue streams. 

Phase 3) Large Mg Quarry Mine + Processing Plant
NPV $800M ballpark (conservative since Co/Ni excluded and green metal prices are increasing
Risk Factor = .10x implies $80M market cap (roughly $1/sh) based on current status
Risk Factor = .30x post permit approval ($3/sh) ... no dilution required to get to this point based on other revenue streams
Risk Factor = 1.0x post start-up ($12/sh) based on current PEA in 5 to 8 years

Phase 4) Value Added Products or JVs
- free ride to some extent here depending on how far down the supply chain WHY wants to go but usually producers stop at ingots or upgraded raw materials but niche markets are likely to crop up

For those who feel I am being too optimistic then please divide my discounted and derisked number by 2. You still get 10x upside from here. The SP is disconnected from reality and it will just take a few savvy investors to come to that understanding. I have loaded up ... well might double down again after this post ... but will be happy it is goes parabolic in the coming days or weeks or months. The value will be delivered ... what I do not know is when the market will reward the shareholders who hang tight. I am sure an analyst will do a great analysis and then reconcilde a price target just above the current SP, but the above is my own analysis. 

Now you now know why I am excited enough to post on SH to help others understand this investment. I guess I am glad I did not hear about them 10 years ago since I would have invested then. Actually it is quite ridiculous that one can hop on board at this market cap ... the PP investors will do well ... and we basically need them to get to the next stop. 

Near term risk is the PP does not successfully conclude. If so the SP will languish for a few months until the company regroups and raises the necessary cash to finish off the mine permit and go on a virtual road show to get the story out to a broad audience. Given the low market cap it will not take a lot to move the SP up. :-)

GLTA

[MagSeeker]

Your really starting to sound like a paid pumper now, keep up the good work.....lol.   Why don't you just let the facts speak for themselves....1 week till PP closes, then likely 2 weeks later an announcement on PP results.   If filled and hopefully over subscribed, great odds the rocket begins liftoff.  If not, investor interest tarnished and we're screwed till the next

[dmacd]

I know of no other miner that can start up mineral quarry and flip a solid profit with nearly no debt. This is the story to promote in the near term, along with the gold drilling. Social / media roadshow and stock goes to $.50 to $1 00/sh in 4 to 6 months. Then we will move up with each news release towards $4/sh after the first season of Mg ore production. Parabolic could happen since we are so

[MiningSucks]

I don't believe anything you say. When my shares are gone I simply hope to find peace. I hope you find yours.

[dmacd]

All your investments are bad per your posting history. I doubt you own shares other than to manipulate. G'day chump.

[MiningSucks]

Ha, that's what you say to people that don't agree with your fantasy.

[dmacd]

Capex for 250 ktpa quarry is minimal since it involves contractors and rental equipment. That is what the upcoming permits are for, but you knew that surely. The 0.25 strip ratio is minimal so development costs are low in the first year. That generates immediate, significant cash flow within the next year give or take 6 months. The next step will be to increase the quarry rate and develop the gold

[MagSeeker]

I would just be pleased to see a press release or pumped news article that was accurate and trust worthy!   Like I said, let the facts speak for themselves and let the company prove me wrong.  Historical track record sucks.  So unless you are an insider, you don't have a clue!!   Stop the gibberish! 

[MagSeeker]

I would just be pleased to see a press release or pumped news article that was accurate and trust worthy! @ Like I said, let the facts speak for themselves and let the company prove me wrong. @Historical track record sucks. @So unless you are an insider, you don@t have a clue!! @ Stop the gibberish!@

[Scot126]

Mining - ignore the troll . It's typical of this sort of jerk  ! They can't take criticism they get angry when you disagree or when they are  asked tough questions like " give us a breakdown of head office expenses" . Or show us where Marasco has bought EQUITY hence takes the same risk with his own money as other shareholders!!!! What are these huge automotive

[MagSeeker]

Scot126, nicely said.  It's nice to read a post grounded in reality!  Cheers!!   Oh wait, we may now be linked as the same person...lol lol....sigh

[dmacd]

Scott, I see you formed a new ID in Feb and only post on WHY.... another pro basher. LOL..

[Scot126]

Another factually incorrect post  1. Scot has one t not two 2.NEW id ? Errr what was my old one then 3. I post on a number of companies but only use this forum for WHY 4. Professional basher - wrong again just someone stating the facts (that you don't like ) 4 out of 4 incorrect statements well done 

[dmacd]

This is good Scotty, you can count to 4. I was not certain some bashers are not topically clever. Now you might see how I get to a current $4/sh valuation based on the MgO mine quarry. WHY trades at a less than 1x 2022E earnings multiple and 0.25x based on 2024E earnings which is ridiculously low. Gold prospects ard reclamation processing and exploration / farm out potential and processing plant

[Scot126]

Hey numb skull it's one t like I said !  WHY trades on a huge premium to :- 1. Current (negative )cash flow 2. Current net asset value  3. current earnings - negative again  ......... and has debt equivalent to 50% of market cap  All of which you chose to ignore . You value the company at some crazy multiple of 2023 and 2024 earnings which are pure speculation! The

[Scot126]

Good luck on your " short squeeze " by the way .I guess that will be you and your institutional investor buddies taking out all the ( non existent) short positions as they pile into the most undervalued company in the world on Monday . Giggle giggle !! mmmmmm ...... funny how you didn't pile into the current fund raise to save the company by giving them cash and yet are saying you

[dmacd]

Scotsy, I have taken a significant interest in WHY but none of your business on the details of that. Last I looked there was a minor short position but it won't take much given the relative tight shares available. Tomorrow is not my expectation for a squeeze or run ... soon enough though. LoL.

[MiningSucks]

It's like someone is telling you the same joke over and over.....then you start to feel like the joke is on you.

[dmacd]

Near permit ready serpentine mag asset primed to generate $20M profits with low execution risk. Should be $200M market cap if you ignore all else. But there is more ... WHY is unique with several levers to drive value. No other junior miner this primed.

[Scot126]

So now numb skull has moved to guessing 200m cap .As usual no facts just spam and guesses ! And having said he was buying Monday he now isnt ha ha ha ha . Expect dire results when full year figures get published soon - rising debt and bigger cash burn  

[dmacd]

I stated my facts in a prior post. 2022E plan for $20M net revenue and a 10x P/E multiple which seems reasonable for a high growth prospect. I can do the math for you but getting to $200M market cap is not difficult. Smart investors will get in now since a double it triple will not take many shares to trade hands ... especially weak ones. This is the most undervalued green critical minerals

[dmacd]

I was conservative since I assume only $100/t for ore sales. Tell me the current price for this ore quality. Bet you do not know the answer so double my number as a hint.

[Scot126]

Trouble is dull boy - if you haven't got cash ,you ain't got  permits, if you ain't got permits you can't mine any ore, if you can't mine it you cant sell it - so it could be 10000/t it makes no difference you ain't got it !!! Dreams and conjecture while the stock falls with one day left on the fund raise and under two years left on the permit . Well done ! superb

[dmacd]

You should stick to blue chip stocks that pay s dividend and have no growth plans. You clearly do not understand risk reward and growth investing. LMAO. Ridiculous arguments that ignores all value to date and near term prospects. You fool only yourself and your other basher IDs.

[MiningSucks]

Presentation says there have been 2 reviews of the permit application. Why in 2 years has there not been any news or PR to keep shareholders ? Nice work W.H.Y.