Recipe for a 100 bagger.
Well I am taking advantage of this little dip to buy more. Hard to go wrong really. How many other deposits are bigger than Casino?
How about this for a dreamy hypothesis? Copper stay above $4 and ends up around $7 dollars due to: declining grades in major mines, rapid development across the world in electricity, including electric cars and urbanization. Gold stays the same in this scenario.
WRN gets the mining ministry to kick the little water ministry's butt and allow them to build Carmacks. This gives them the necessary cash flow to build Casino without too much dilution. So in 5 years WRN is starting to build Casino with the money from Carmacks.
In 8 years WRN has built casino and Carmacks is coming to it's inevitable conclusion. So valuation wise? They need 100 million or so to get Carmacks up and running. Sell 30 million shares @ 4 dollars. Total float 130 million.
Now let's say that there is 20 million ounces of gold 10 billion pounds of copper and 1.3 billion pounds of moly. (By the way in 7 years moly is $30/ lb because of the nuclear renaissance, and dirty oil and coal and all of these electric cars and trains needing all this power- oh wait and copper too!). Let's mine this reserve in 30 years. 666,000 ounces of gold per year, plus 333 million pounds of copper, plus 40 million pounds of moly. We won't get it all but there must be some more metal there that can make up for metal recovery errors and blah blah blah. Let's assume it costs us 2 dollars a pound to get the copper out, 500 ounce to get the gold out and 10 bucks a pound to get the moly out. These are really high costs but remember copper and Moly have gone up a bit. So we make 5 bucks a pound from our Copper, 900 bucks on our gold, and 20 bucks a pound on our Moly.
666,000 times 900=599.4 million for our gold
333million times 5 bucks is 1.665 billion for our copper
40 million times 20 bucks is 800 million for our moly
So in a year we earn about 3 billion dollars. Lets say the market values as at 1 times earnings, or 23 dollars a share.
So if the market values us at 5 times earnings we get 115 dollars a share.
And 10 times earnings we get 230 dollars a share.
How about that other annoying little deposit that is 4 percent cueq? How much bigger can that one get? And that trifling little play on the island?
I think I just talked myself into buying more. Good luck to all and have a wonderful life.