From today's presentation I have summarised the progress that...

From today's presentation I have summarised the progress that management are working on while the stock market does what it does. I still don;t see what else they could have done or be doing than adding value and accomplishing tasks within their control. Yes I have turned up late to the party and picked up the girl without having to put in the long spade work but that was my choice and good fortune. Seriously, read below and tell me that management are not still doing good, smart work and adding value to this already undervalued project?

M1 Sth Deeps

Extend reserve deeper by another 200m at 1300 Oz/m for another 260,000 Oz reserve

 

M5

Optimise pit to increase reserves by 10-15% , adding another 90,000 Oz (12% increase)

 

Opimise process plant to increase throughput to 2.5Mtpa

 

Shorten mine schedule 11.5 to 8.5 years via increased t/put

 

Increased Profitability via shortened mine schedule with increase annual gold production, increase annual profitability (reduce LOM cost/Oz) also increasing NPV through shorter discount period.

 

Increased Reserve of circa 350,000 Oz with AISC of say USD$700 (higher than existing average to reflect increasing depth cost) will add USD $210M to profits

 

NPV increase from USD$567 to USD $710 ($210 at 5% disc over 8 years = $142M NPV) through increased reserve production, then increase again maybe another USD$60M (or NPV $40M) with higher annual production, increased profitability and shorter NPV discount.

 

New NPV total circa USD$750M up from $567 represents a 33% increase. At long term exchange rate of AUD$0.75 the new NPV isAUD$1B for a company with Equity value currently around AUD$130M.

 

Exploration Upside with M5 underground potential demonstrated by intersection of 14m at 22.5g/t Au beneath pit shell, plus M1 Sth obviously still open at depth. Further exploration upside within 20km trucking distance.

 

Strategic Value with B2 Gold’s +1M Oz high grade Toega deposit within 20km of new plant. Soon to be $200 Oz/pa low cost producer with high leverage to an increasing gold price environment.

 

Risks

Burkina Faso terrorism increases and expands effecting operations or operational costs

Infill drilling at M1 Sth finds ore body decreasing in width and grade

Plenty of price drivers to steady the share price and turn it around by end of Q1. However, WAF still has over a year chugging along building a boring mine and progressing through start-up risks to nameplate capacity. This is not an exciting trading stock any more, this is a buy at the base and ride it up slowly into the production phase (sans takeover).

Goodluck