WWI – the next multi bagger small cap gold producer?
Hi everyone, I have a riddle for you.
Question: What do you call a company:
With an
MCAP of $15.7m (at 2.2 cents); Approximately
$4m cash ($3.2m in the
last quarterly; an approximately
EV of $11.7m; and monthly cash flow of over $250,000 per month?
With its lead project located in the
Witwatersrand Basin that has historically produced 1.5 billion ounces of gold?
With
3.26 million gold ounces JORC 2012 compliant resource with an
average grade of 3.4 grams per tonne (2 grams per tonne cut-off)?
Working to increase its JORC 2012 compliant resource to reflect its JORC 1997 compliant resource of
12.8 million gold ounces?
Already producing gold with a cost of production of
$800 per ounce (even at small scale)?
With plants to
substantially increase its production by Q4 2018?
And looking to move to full scale mining of
100,000 ounces per annum with a 10-year mine life?
With exploration and development ongoing at its Pilbara, Western Australia based conglomerate/nugget gold
mining leases with a view to
producing gold in Australia this year?
Whose Pilbara based
mining lease tenements are already turning up
nuggets?
Fundamentally undervalued compared to its peers
with an EV to ounce ratio of only $4 per ounce?
All with a chart that looks like a cup and handle, volumes increasing this year with
oversold indicators turning bullish?
At a time where
AUD denominated gold is tantalisingly close to its all-time highs?
Answer: I would call that company
fundamentally undervalued and well and truly capable of being a 5 bagger or more just on where it’s at right now. My view is that this company has great prospects and has capacity to appreciate in value in the short, mid and long term.
Even as a ramping-up small producer, it has a massive 3.26m ounce resource in the Witwatersrand Basin and the potential to modernise and revive its 12m+ ounce JORC compliant resource.
And let's face it, there's not many other projects out there that can boast such credentials as Witwatersrand and Pilbara based interests - along very similar lines to the strategies of the legend himself Mark Creasy (
who in this article, unsurprisingly, has interests in both areas as well).
Definitely "
add this one to your watch list"
(20min delay)
