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independent valuation of luapula plant, page-132

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203 Posts.

44

23/03/19

12:41

Post #: 37861414
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Originally posted by The Avenger: ↑

Great to see all these eyes on WFE...stocker picker’s market is 2019...will be a heart explosive open and more hard yards still to go here...stamina remember ...WFE Plant Valuation!!! Kudos yet again to mgmt for paying $5.5m and now owning a plant worth $70m and the SP will accordingly reflect

BUYING A COBALT/COPPER PLANT FOR a measly $5.5M USD

Consideration for the 50% interest in the Luapula Cobalt Processing Facility to comprise US$5.5m in reimbursements of historic development expenditure and 100m shares to be issued upon execution of the Joint Venture and Development Agreement

THE PLANT IS NOW VALUED AT $70M USD…..that is the “PURCHASE OF 2019”…so that’s a 12 times increase in the value of this little minnow

Key points on this major “WFE cobalt plant valuation”

1. The independent valuation on the plant is “completed”(BIG TICK ON THE MARCH TO RELISTING)…..That was the primary focus for the Plant Valuation. It was done by a professional well recognised valuer and within the Valmin code (2016)…..METS in business for 30 years and over 6000 individual valuations
2. On a new plant basis (THE PLANT ONLY) it’s $85M USD….approx $120AUD…in terms of ongoing basis is $70M USD with a $10M spend on commissioning…please note Page 7 and WFE will contribute the capital at 50% to get it operational (so $5M is how I interpret this). All the refurbishment work has been identified from pages 46-74. Also, please turn to page 93 under “Project Budget” and the Plant Refurb cost is USD $2.3M…..all the other costs relate to FIRST FILL, SPARES, OWNERS COST, PERMISTING AND COMMISSIOING (not upgrading). Yes I’ll concede slightly more work than anticipated on the plant to get it to nameplate 250,000tpa but if all gets done will indeed be a company maker
3. Adequate power, water and infrastructure
4. Page 2 the report based on 25tph of COPPER COBALT ORE(so as rightfully pointed out by Mutleyon 175,000 tpa throughput)…and METS report page 2 indicates “healthy processing margin” on this. We are moving to 250,000tpa and have a 2.5 years of stockpile at 636,000tpa on grades of 1% cobalt and 2.5% copper…..so NPV gonnaIMO come it at a lot higher…the PROSPECTUS is the end game
5. NPV CLARIFICATION in IMO - Also note page 10 of METS report and clearly “the purpose of the plant valuation report is to recommend an estimated market value at a fixed point in time”….that’s what we get here…..”Real market value is constantly changing with market conditions and expectations AND CAN ONLY BE DERIVED AT THE MOMENT OF CONTRACTUAL AGREEMENT BETWEEN A BUYER AND A SELLER….so cast all your NPV concerns aside which use simple going concern models for estimating for the purposes of the ASX…all fun stuff IMO…just refer to page 44 for all the little model assumptions/and playful calculations…love that OPEX and CAPEX lack of clarity…hahaha
6. METS indicate there is a large Chinese owned processing facility next door and bodes well for the company in which we are in
7. METS reports we are 7km from the centre of Likasiwhich allows us to source “SKILLED WORKFORCE”….nice note operationally. There is the LikasiGecamines workshop which provides machine repairs and steel fabrication…..good to see “maintenance workshops nearby”
8. Now this is HUGE…..there are “Large open pit resources and landholdings located nearby AVAILABLE FOR AQQUISITION and EXPANSION”…..Hmmmm
9. This is also HUGE and as reported by METS…….WFE’s exploration tenements “with cobalt resources” could be possible feedstock for the plant in future
Whatever it takes JB (vision) – ASX re-listing

Whatever it takes JB (vision) – on LSE listing

Whatever it takes Airguide – on off take with the Europeans

Whatever it takes JB (vision) – on European strategic partner

Whatever it takes JB (vision) - on creating the first ASX cobalt producer

Whatever it takes JB (vision) – in becoming a Clean cobalt provider with KUMI

Whatever it takes JB (vision) – in creating a Top 10 global cobalt producer

Whatever it takes, whatever it takes!!!

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WFE Price at posting: 2.4¢ Sentiment: Buy Disclosure: Held
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