Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

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

Alternate Symbol(s):  WHYRF

West High Yield (WHY) Resources Ltd is a Canada-based junior mining exploration and development company. The Company is focused on acquiring, exploring, and developing mineral resource properties in Canada. Its primary objective is to develop its Record Ridge critical mineral (magnesium, silica, and nickel) deposit using green processing techniques to minimize waste and CO2 emissions. The Company’s Record Ridge critical mineral deposit located 10 kilometers southwest of Rossland, British Columbia has approximately 10.6 million tonnes of contained magnesium. The Company retains 100% of the mineral rights to the Record Ridge Property, which consists of 29 contiguous mineral claims, eight crown-granted claims, and one privately owned claim totaling 8,972 hectares. The known magnesium mineralization is located within two of the mineral claims. The infrastructure for the proposed development of the Record Ridge Property is located on mineral tenures controlled by the Company.


TSXV:WHY - Post by User

Comment by Scot126on Mar 16, 2021 4:36pm
125 Views
Post# 32810000

RE:RE:Critical Mineral List

RE:RE:Critical Mineral List

True patriot - also from PEA "This claim was originally located by WHY on June 2, 2005, and is in good standing until February 28, 2023."Time is running out.

You say this stock is undervalued - it is arguably worth nothing .If only it was that simple to just take the NPV number and divide by the number of shares to find true value.The trouble is you CANT do that . If this was the only valuation premise then the market would value the shares accordingly.

If you read the annual accounts they are what is called " qualified " by the accountants signing them off .What they say is the company is only a going concern ( viable) on the assumption it can keep raising funds . In other words if it can't it's bust !!!

Valuation also has to take into account the debts of the company.These are about $6m at present .Any party that say bought ( bid for ) WHY would on day one have a liability of that amount.

The current valuation of 15 c a share takes into account cash flow ( nil from operations and in fact hugely negative each year),  and asset value ( next to nothing as it holds no real assets ) 

They have no licences and need cash (which they haven't got )to get them - oh and to repay the 6m of debt.This debt is growing all the time .

Please don't tell me this is undervalued because of a simple NPV calculation and the market knows it that is why the shares are where they are.

Oh and with the market cap ( number of shares x share price) at some $13m who would buy this for a big premium .With the debt buying every share today's price would in effect cost you $18m !!! - and as it stands you would not have licenses to mine and a mere two years left on them .Large companies do not take risky bets like this and in my opinion this rules out a takeover .

If someone can make a case where the above opinion is flawed let's here it .
 

<< Previous
Bullboard Posts
Next >>