Since the SP has been rickety, I think it's a good time to go through recent history:
1. Instead of the Korea Zinc deal, woulfe managed to get a more lucrative deal from an extrordinarily successful off-taker who *needs* the resource for strategic reasons.
2. Drilling results came back with a 25% higher grade than anticipated
3. The lab work came back, with recovery 7.6% (= [0.85 - 0.79]/0.79) better than anticipated recovery
If you combine these three things, it works out to:
Instead of 49%, woulfe owns 75% of sangdong. Without complicating things with the APT JVC's costs and earnings, we can already expect woulfe's earnings from concentrate sales to be worth 53% more than they would have been with KZ. workings: [0.75 - 0.49]/0.49 = 0.53)
Because of the increased grade and the increased recovery, sales are going to be 34.5% higher than anticipated. Workings: 1.25*1.076 = 1.345
So in total, relative to just a few months ago, woulfe's portion of the value of sales (and that means our revenue per share, too) has increased by 105.7%. Most of that increase is made up of increased ownership in sangdong, but a major chunk is attributable to increases in WO3 recovered. This is important, because gains from this translate into lower costs per MTU (since you're getting the more WO3 per unit of processing work). And this, of course, means lower total operating costs, and therefore even higher earnings. And again, this isn't even taking the APT JVC into account.
Seeing the stock price stay at these levels hurts me, because even though I keep saying it, I seriously think I'm 100% out of capital now! The news just keeps getting better and better! I can't wait to see the BFS!
Congrats to those of you still able to buy it up. Someone called this stock a zip code changer. But given the long term prospects here, I think we might be looking at a trust fund maker.
GLTA longs, as always!