@Shaq_01 .....
I've been trying not to use opinion, just the numbers provided by the company in this report, plus the last App 3B, plus the last SP of 2.4c plus the statements of how much to be raised by the company.
What your asking for is definitely opinion only and will vary vastly between people....
1. offtake agreement (assume you mean upfront payment as well)....
These are always double edged swords. The company gets cash now for whatever purpose, but the company supplying the cash will want a future benefit, perhaps a discount to market price for the Cobalt supplied in the future. No such thing as a free lunch.
2. A strategic partner.
I'm not even sure what you are meaning here. In what regards would this partner operate? What cost and benefit?? I can't comment on something so vague.
3. Further tenements.
An exploration tenement is just a piece of land that you pay for and hope to find something. It gives you the right to search, not mine. There are many thousands of exploration tenements that are totally without any value. Value only comes if you find something on them.
Further tenements zero value, I also don't give much value to the existing tenements. This is just blue sky territory, a good drill result would change the value overnight, likewise for a bad drill result.
4. Cathode plant.
Look to Tiger resources for the capital cost of such things. Given current funds available any talk of Cathode plants are way off. It is just too expensive for a junior to even contemplate. IMHO current shareholders would be diluted to oblivion to pay for such a plant.
5. LSE listing
Another cost, as in annual listing fees. Why bother, what's the benefit to current shareholders? Surely just getting suspension removed is the number one priority. Companies that do everything correctly and show a potentially highly profitable operation via Independent Experts and feasibility studies etc, have no problems raising funds on ASX.
WFE should be no different.
6. Insto Buying in.
Why would they?? No evidence of any being interested. My own experience shows that most upside potential has already happened by the time instos are interested, especially on these small juniors. They tend to multibag before instos are interested, have good resources that need lots of capital to develop. WFE has no resource, so what is the potential for an insto??
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Basically none of the above would overly influence me on my analysis. I look at the profitability of the operation compared to the current Mcap (plus any raising needed) to see if there is an opportunity to make good money.
The current report of the 'value' of the plant means nothing to me, as it has no value unless it can generate profit. Only the profit has 'value' IMHO, especially related to Mcap.
A rising or growing profit through resource expansion and operational expansion, especially in a rising commodity price scenario is the best of all worlds for investment for me.
WFE looked to have this last year when Cobalt prices were on the up and up, with a bold plan and fast execution (the weakness for me was no resource, and the claimed third party ore did not match common/average resources in the DRC).
Circumstances have now changed. The main one being the price of cobalt collapsing, but also the fast start has been much slower than anyone expected. The low NPV compared to Mcap in the report also shows the blue sky disappearing from this project, IMHO probably related to cobalt prices.
