Western Copper and Gold Corp T.WRN

"Construction Ready" follies

[jclarke042]

For those hoping we sell after permitting, I give you B2Gold's acquisition of Sabina Gold & Silver:

https://www.mining.com/b2gold-to-buy-sabina-gold-silver-for-824-million/

Sabina hit its ATH in April 2011, on the back of strong drilling results. Touched C$1.2 billion market cap at $7.50 per share.

Today, with it's fully-permitted, construction ready project in Nunavut, they agree to a takeover of......$1.1 billion at $1.87 per share.

Permitting = time risk = dilution = long term shareholders pissing & moaning about an underwhelming sale Price Per Share.

[dfwrgk]

That mine sight requires everything to be brought in on boats or on the ice in winter or small aircraft... very expensive situations and less years of mine life, although a good asset. But you are correct about the realities we face and what might be a realistic value of WRN. We are undervalued, regardless! 

[Sooner]

Excuse me - but growing outstanding share count 370% in 12 years is ridiculous. Sabina currently has 567M shares outstanding so you're saying in 2011 they had 160M shares so they added 400M shares over 12 years????  WRN share count in 2011 was right at 100M. Now right at 160M.  You're trying to compare that to WRN share count growth we could expect over the next 4-5 years to

[jclarke042]

Pointing out this transaction to highlight "construction ready" does NOT necessarily equal re-rate to the upside. Wonder how long all the above took you to write. Waste of time, if you ask me. Take-unders galore in this sector. New target price for me is $500m.

[Sooner]

we all agree (well mostly except those that believe in a financial reset with gold backed currencies) that we will NOT be going back to 2011 froth. That being said, i have to call you out on trying to say WRN would EVER dilute to the level you are saying Sabina did. That's ridiculous and we have zero evidence of that level of dilution at WRN over the prior 12 years. 105M shares to 160M shares

[jclarke042]

For the third time now, my point is getting the permit alone probably won't bring us back to ATH on a market cap basis. 

[jclarke042]

And even if it approaches market cap ATH, there WILL be some dilution in there.  Think the team is just going to forgo salaries? No chance. 

[Sooner]

never said it would...and for the 3rd time..my point is why are you comparing the dilution on Sabina with WRN? They are vastly different rates over the prior 12 years. Am i confident we will hit $6 USD? No - but if i had as little confidence as you in the ability of our management to at least get us up to a reasonable level of valuation...I'd probably sell my shares and move on. BTW - i

[jclarke042]

You suddenly seem nervous about $6 usd target.

[GardenManman]

Ha. Jc. Totally agreed.