Western Copper and Gold Corp T.WRN

Copper Projects Review 2021

[Marine2]

Western Copper at the top of the lists for the most probable buyout this year.  $1.5B IMHO

Copper Projects Review 2021

Link>>  https://www.orocoresourcecorp.com/_resources/blog/RFC-Ambrian-Copper-Projects-Review-2021.pdf

 

Copper M&A Update Report

December 2021

4. Issues Facing New Copper Developments

 

4.1 Country Risk

We have reproduced the latest country risk ratings from Control Risk for the ten countries where the 23 projects are located. The standout is Papua New Guinea where the political, operational, and security risks are high and is the location of the Yandera project. The only countries with low risks are Canada and the USA. Since our last survey, Chile has started experiencing civil protests throughout the country and the political risk has risen from low to medium.

Country Political Operational			Security Terrorism
Argentina	Medium	Medium	Low	Low
Canada	Low	Low	Low	Low
Chile	Medium	Low	Low	Low
Colombia	Low	Medium	Medium	Medium
Ecuador	Medium	Medium	Medium	Low
Indonesia	Medium	Medium	Medium	Medium
Mexico	Medium	Medium	Medium	Low
Namibia	Low	Medium	Low	Insignificant
Peru	Medium	Medium	Medium	Low
Philippines	Medium	Medium	Medium	Medium
PNG	High	High	High	Insignificant
USA	Low	Low	Low	Low

Source: S&P Global Market Intelligence, Control Risk

 

Table 4. Projects Ranked by Probability of Further Outside Involvement
 

Size	Factors affecting project Takeover
Rank Project	123	4567	8 9 10	Takeover Potential
4 Cascabel				High
6 Vizcachitas				High
8 Casino				High
13 Costa Fuego				High
17 Santo Tomas				High
3 Los Azules				Medium
5 Los Helados				Medium
7 Altar				Medium
9 Josemaria				Medium
10 Canariaco N.				Medium
21 Cotabambas				Medium
22 AntaKori				Medium
1 Pebble				Low
2 Tampakan				Low
11 Yandera				Low
12 La Verde				Low
14 King-king				Low
15 NorthMet				Low
16 Los Calatos				Low
18 Beutong				Low
19 White Pine				Low
20 Haib				Low
23 Mocoa				Low

Source: RFC Ambrian

9. Casino

Western Copper and Gold (WRN CN: C$1.77 | US$216m) is a Canadian company focused on developing the wholly owned Casino porphyry copper-gold-molybdenum deposit located in Yukon, Canada. The project contains 4.9Mt of copper and 21.1Moz of gold. As at September 2021 the company had cash and investments of C$35.8m.

A significant resource expansion was announced in 2020 after a major drill program in 2019 and a PEA was released in 2Q20. The open-pit mine has a low strip ratio and is expected to produce an average of 77kt/y of copper and 260koz/y of gold from a mill and heap leach operation at a total cost of minus US¢113/lb over the 25-year mine life with initial capex of US$2.6bn. The high gold production results in a negative copper equivalent cash cost. At a copper price of US$3.00/lb the project has an NPV8 of US$1.9bn and an IRR of 20%.

In May 2021, Rio Tinto made a strategic investment in Western Copper through the purchase of 7.8% of its shares for C$25.8m. Further exploration drilling has occurred this year and a feasibility study is underway for completion in 2Q22. The study will also form the basis of the Environmental and Socio- economic Statement, the submission of which is the next step in the environmental assessment process.

This project is attractive due to its high gold production and has already attracted the interest of Rio Tinto. With strong returns we believe there is a High possibility of a third party either looking to acquire the project outright or taking a significant interest in the medium term.

M2

[Pinegrove1]

WRN should promote this independent study as independent verification of the value of Casino. Paul should talk about it and there should be a link on their website 

[Pinegrove1]

I'm sure they have seen it but I sent it to investor relations anyway...

[Marine2]

Hi Pinegrove I'll try to dig up more meaningful resrarch material to help the cause. We are all looking to support at least a $1.5B buyout ! I feel this is the year of closure for WRN, just a matter of time. IMO Many reasons why the market is not counting on that $8 to $10 offer from RIO any time soon, I say by June ! M2

[Heywood_Silvers]

Best support for WRN fetching well into the double digits has already occurred:  the Great Bear buyout last year. If zero ounces are worth $1.42 billion, how much are 30 million equivalent ounces worth? Here's a (likely) fun fact for everyone:  Casino has more mineral wealth and offers a higher NPV than does Great Bear's project.  That is all the argument anyone needs to

[cb2task]

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