Western Copper and Gold Corp T.WRN

Lundin acquires Josemaria

[jclarke042]

https://www.newswire.ca/news-releases/lundin-mining-to-acquire-josemaria-for-c-1-60-per-share-for-cash-and-shares-for-a-total-purchase-price-of-c-625-million-882380413.html

Copper/Gold project in Argentina. You've seen them in our corporate presentations, relatively same size in terms of Cu tonnage, we're bigger in terms of CuEq. All terms in USD:

Their after-tax NPV - 1.53b
CAPEX - 3b
IRR - 16%
LOM - 19 years

Lundin acquiring for $483m - .32/NPV or approx 3 cents per lb CuEq.

We're after-tax NPV - 1.88b
CAPEX - 2.5b
IRR 19.5%
LOM - 22 years.

Take what you will from the above.

[EvenSteven27]

I’m a Josemaria holder. My main holding is WRN, but I did buy into josemaria to diversify my portfolio. The Lundin family name carries. This project is in the hands of one of the sons, Adam Lundin. But the whole family is brought up to have stern discipline. Josemaria is certainly in the same ballpark as Casino,

[phoenix_trader]

Arguably the Josemaria deal today revalues Northisle (Corman/Lee) to the current WRN price. Mill size is half of Josemaria, payback same. Northisle capex is a fraction of either Casino or Josemaria due to infrastructure in place.

[Diamondboy123]

Hey phoenix what's your connection to north isle?  

[phoenix_trader]

 DB:   WRN sale proceeds following Rio buyin earlier this year were invested in NCX from .30 down to .17. Was a WRN spinout in 2011. " With the completion of the plan of arrangement on October 17, 2011, the Island Copper-Gold Project and $2.5 million were transferred from Western Copper Corporation to Northisle." I like the location, new team (2020) and most

[Diamondboy123]

 I own the stock since the spin out.  I've waited so long for wrn . Still waiting. North isle will take even longer.  No thank you. I saw you promoting often so  I thought you were connected somehow.  

[phoenix_trader]

When the NCX volume spikes from drill results, indigenous nation agreements and the award of the PFS contract, Diamondboy will be trading the stock and commenting, is my prediction. Seriously, look at the presentation, the M3 PEA and the recent pop in share price. Northisle will be in production before Casino and with a major in charge of the build. A $2 Billion difference in capex is the reason

[Diamondboy123]

If and when wrn pops I'll be so out of the commodity space it ain't funny. 12 years in western taught me that dead money is akin to losing money.  No thanks. 

[Heywood_Silvers]

Anything in Argentina will never be in the same ballpark as Casino in my opinion.  There is a reason why I will not invest in anything that is in say Argentina or Bolivia for that matter. Jurisdictional risk needs to be on every investor's radar.

[Sooner]

Picked up another 20k shares today-  32% NPV in Argentina should easily give us a floor of 35-40% in Canada.  We are trading at about 10% right now ...

[Sooner]

As usual, Josemaria was trading about 27% of NPV before announcement of acquisition I believe...we are about 10% I believe. So the continual question is why???? We should stop blaming large capex...josemarie rejects that thesis. I did note that josemarie NPV based upon $3 Cu and WRN $3.35 so in reality probably very similar.  Underlying question that always comes up is why our peers

[jclarke042]

Well, what do you think it is?

[Diamondboy123]

Taking too long to execute.  Failure to close when the opportunity arouse.  Real capex much greater then stated.  Asking too much.  Progressive cdn governments.  

[jclarke042]

Maybe. But always remember, CAPEX is necessarily accounted for in NET present value, so I personally find it a convenient excuse for the majors. Yesterday should (as sooner pointed out) put that excuse to bed.  IMO, for too long we've been stuck in a game of chicken. "Looming supply deficit" from juniors; "no big acquisitions" from majors. Now look what happened the

[GardenManman]

from Josemaria chart, it seems share price went up from August, until the news out. At same time, copper price, gold price just did stabilization. Other Mining company aslo same. So, I think market "smell" the news in advance. WRN price stay at this level, that means the it doesn't happen in short term(3 months?).

[jclarke042]

At least in GBR's case, news had been coming out Barrick was buying the surrounding claims, fueling the buyout speculation. Paul, your moment awaits: continue to stress the metallurgy work completes Rio's checklist, especially after you release the results. Market needs to see end of the tunnel. No 18 months. No possible 12 month extension. No enough cash to complete permitting solo. Rio&