Woulfe Mining Corp WFEMF

Buy out

[sober_thoughts]

I agree with CJHallee.  I hope WOF and IMC are talking about a buy-out.  It makes sense.  While I expect the stock to rally from here, I also expect significant selling as the share price moves upwards.  A buy-out also makes sense looking at the major shareholders.  Companies such as RIN and PNP trade at a significant discount to NAV.  In a world where cash is king at this point in time, cash for share buy backs or purchase of other low cost companies is needed.  Right now, WOF is not alone is terms of being undervalued. 

While WOF's long term prospects look good, without a buy-out , the large share float becomes a real problem in terms of sustaining a consistently higher share price.    

If WOF and IMC are not seriously talking buy-out, I can't understand the reasons for the delays.  IMC is a large multi-national company.  IMC would not make investing decisions based on the spot price of tungsten.  IMC is well aware of the 5 and 10 year price forecasts. IMC has done its due diligence. Either there is some material information that management has not disclosed  (e.g. the ground conditions which seem to have impacted driling and really haven't been explained) or some other factors are at play (e.g. buy-out or additional negotiations regarding transfer pricing or the bank loan rates).

I also agree with TechOne.  There is a lot of other information that is outstanding.   I know management tends to group press releases together, but we need for things to move forward.  If a buy-out isn't imminent, management needs to help investors such as myself understand the bankable feasibility study.  The $400 million NPV, while positive, came in well below expectations.  Every NPV calculation I calculated using a $400/mtu price discounted at 8% yielded an NPV between $550-$575 million.  This was consistent with the Ross Glanville report which suggested a most likely NPV of $600 million once a bankable feasibility study was in place.  Considering the increased grade, the additional drilling results since August, and the increased recovery (from 70% to 85%), the $400 million in the bankable feasibility study was well below expectations.  To date, the explanations I've heard from management don't explain the difference.

For the record, I've been long WOF for a couple years.  I like the company.  Management has a proven track record. WOF has, by all accounts, a world class resource.  It has also the good fortune of owning the right commodity at the right time.  A management team that can take a .10 cent stock to an NPV in excess of $1 in under three years is a combination of both good luck and good management.  Let's hope management can work out plans to monetize the investment in the very near term. 

Good luck to all longs.

[wolfry1]

Sober.... What reasons did Woulfe management give for the low NPV figure of $400M ? Thx

[Majormac79]

The cash is king idea is only true when in a deflationary cycle. This would be betting contrarian to what most of the world governments (exception being germany ) want to do. I expect there to be an announced QE3 sometime this year which is inflationary.  APT spot market seems to only move every friday and i consider it the indicator on the Woulfe/IMC deal. 400$/MTU and up makes me feel quite

[professorchaos]

The folks at IMC seem to be truly exceptional managers. I doubt very much that they are paying attention to the spot price of APT. Instead, I imagine they are considering the long-term importance of a strategic resource. If they can shield themselves from the shortages that are imminent in the tungsten market, they will be giving all of their divisions a major advantage over rivals. Given that the

[cult_of_frank]

In my opinion, buyouts when markets and stock prices are at ridiculously low levels are good for only one person: the buyer. If you think an offer would be for anything more than 50 cents, think again. It doesn't matter what the intrinsic worth is, it doesn't matter what potential is there, what matters is that the buyer gives a price to get the best possible return on his investment (in

[junior_miner]

" Instead, they have what I understand is a pretty attractive offtake agreement for themselves when the price is high and pay closer to the spot price as the price goes down." Do you know any specifics about the offtake?

[cult_of_frank]

Unfortunately I only know what you do, from what Brian said in the conference call announcing the offtake and financing (which I've summarized in the sentence above).