GREY:WFEMF - Post by User
Comment by
SmitherTimeon Sep 21, 2012 2:07am
372 Views
Post# 20394170
RE: RE: RE: risk
RE: RE: RE: risk On the point that Woulfe may not be such a good buy in the next 3 months I would have to disagree. Anybody that is worried about tax loss selling on Woulfe right now is crazy. In the next 3 months, the company will have cash in hand from both IMC and Shinhan Bank. The project will be fully financed and in construction heading for production in December 2013. It will have had a resource update increasing its NPV well above $400 million.
As Sangdong gets closer to production, it's share price will creep closer to reflecting its NPV (Which would put the stock at current valuations at over $1). If Woulfe doesn't break it's 52 week high of .405 cents between now and December 31st (Barring a complete market meltdown), I will eat my shoe. Even with this welcomed news, I agree that there is always some element risk until the cash is in hand. On account of tax loss selling however, I don't see that as something we will have to worry much about.