Ann: WAF Receives Strong Interest from Leading Debt Financiers, page-61

Hi Wainui,
I’ll share my opinion just quickly as I’m at work. First, not sure which Companies you’re comparing us with but it must be said not all feasibility studies and NPVs are created equal so we should be very careful comparing.
I think most of us here believe our NPV will get significantly better in quick time, such is the quality of the ground. Note that our NPV has trebled in short time since the decision to go underground at M1 South, with deeper discoveries already made. It would be wrong, imo, to compare this NPV with that of a Company which has toiled for many years and produced a best case NPV scenario on a resource that will be difficult to grow.

Second, we are very low cost and, according to Management, will get lower. This means we make money throughout the cycle and are also highly sought after from peers looking to reduce their cost profile. Indeed, we are often at the top of the list in (media) discussions of most likely to be taken over. Taken together with our location, we make a great fit for one of the miners operating in the area. So there is a well deserved takeover premium for this stock.

Just finally, our US$185M capital costs will be recovered in 16months. That is before any improvements to the DFS, which will easily come imo. Roughly, we will be turning over our EV every year in cash flow. I think that makes us very cheap comparatively, in my experience.
Cheers.