Woulfe Mining Corp WFEMF

The deal with IMC and valuing Woulfe

[nebbya]

I used to follow Woulfe closely but have not looked at their progress for 5-6 months until today's announcement of the convertible bonds.  What is not clear to me is how the proposed deal with IMC work out in terms of valuing Woulfe. Although some have expressed skepticism on the deal working out, assume here that it does.

 

IMC gets 25% of Sandong.  IMC owns 55% of the APT processing plant.  If the profits are the same at each stage, then Woulfe would receive .75*.45 = 33.75% of the profits made through the mining and processing value chain.  Reading the PEA was not sufficient to determine the breakdown of profits in mining versus upgrading to APT.  This net end percentage obviously goes up if there are more profits in the mining part versus processing.

 

Anyone shed some light on this line of reasoning?  Is Woulfe's share of the NPV of Sandong really just ~1/3 of the NPV?

[nebbya]

Too late here, clearly my brain was not working correctly.   IMC gets 25% of Sandong.  IMC owns 55% of the APT processing plant.  If the profits are the same at each stage, then Woulfe would receive (.75 + .45)/2 = 60% of the profits made through the mining and processing value chain.  Reading the PEA was not sufficient to determine the breakdown of profits in mining versus

[StockExpertPro]

Great question! Why is IMC receiving 40% of over $8 billion dollars worth of tungsten for a measly $35 million dollars. The other $35 million is just a loan to Woulfe Mining which can be paid back in free tungsten for IMC. If the Sangdong tungsten mine has a 40+ year life span with around $200+ million per year in potential tungsten revenues. That would be over 8 billion dollars. Maybe this is why

[guerreiro]

Good point StockExpertPro; It is evident that the Jewish connection have ganged up on poor Brian as he had no other recourse but to go along on whatever IMC wanted and obviously Goodman's appointment had to be approved by all of the major insiders to get to this level. It is all about probability and managing the risk. ( shares will move up in price only once Goodman's

[AAA-1]

or Ned Goodman has some influence to close this deal...towards the advantage of WOF.  Or, Ned and company negotiating a buyout?   who knows?  this has been frustrating to say the least.  

[kilgor]

Nebbya, I might agree with your calculation if both the APT plant and the mine were of equal value, but they are not. First of all Financing • $5 million IMC bridge loan (Woulf has to pay back) • $30 million equity from IMC for 25% of Sangdong project, pending due diligence and feasibility (Another 80-90 Million has to be invested by Woulfe via bank loan, hence Woulfe owns 75% & IMC 25%)

[AAA-1]

well, Goodman, et al is not buying all these shares NOT to make monies on the deal...   and I doubt just 100 percent gain, for this matter.