On Chris Judd’s Talk Ya Book today, Luke Laretive from Seneca Financial Solutions shares his thoughts on Wildcat Resources (ASX:WC8), and why he thinks the fledgling lithium developer can overcome lithium’s wild ride.
Mr Laretive – a self-confessed “long-term lithium bull” – is fairly positive the world is going to “need more lithium” soon rather than later as cars go green.
That’s actually why Wildcat Resources looks like a “pretty good buy” in his eyes.
One of its strengths, Mr Laretive continued, is where it’s placed in the illustrious Pilbara region, where mining majors like Pilbara Minerals (ASX:PLS) and Mineral Resources (ASX:MIN) have already found big victories.
“It was part of GAM’s initial portfolio in the Pilbara, Tabba Tabba [the Wildcat project] was number four in that area alongside Pilgangoora, which Pilbara owns now, the Wodgina asset which is owned by MinRes, and IGO part-owned the Green Bushes asset. Tabba Tabba is the last one to be developed,” he explained.
Wildcat, which acquired Tabba Tabba for $10 million last year, just scored a vital granted mining lease which should put the mining hopeful in play “a year or two early,” the Seneca Financial Solutions manager said.
“You wouldn’t buy [Wildcat] on the re-rate for the resource, but what’s more relevant is that larger mining companies love buying proven winners,” he added.
“[Matthew Banks] has just put together a really amazing group of people.”
Mr Laretive concluded the WC8 shares are “just so cheap” – and with the company’s market cap, “there’s some amazing value there.”
Wildcat last traded at 31.3pcs on Wednesday.
Talk Ya Book was created by AFL football great Chris Judd in 2019 as a show where fund managers could share their highest conviction investment idea but more importantly showcase their investment framework to the public.
In 2023, Chris joined the people he interviews in the world of funds management by creating the Cerutty Macro Fund. Chris is the founder and portfolio manager of the fund which looks to invest in long term, secular, macro trends.
Disclaimer:Juddcorp Pty Ltd ACN 635 629 631 is a corporate authorised representative (CAR) (CAR Number 1300536) of Boutique Capital Pty Ltd ACN 621 697 621 AFSL 508011.
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