WSA 0.00% $3.86 western areas limited

Rad,I think you are looking at the global reserves for...

  1. 13,919 Posts.
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    Rad,

    I think you are looking at the global reserves for Forestania, which is diluted by a lot of low grade stuff. You need to look at the reserves for FF and SQ, which I recall being about 20Kt and 70kt of contained nickel, at about 3.5 and 4.0% (please check, my memory is failing), which shouldn’t lead to too much cost rise for the life of those reserves, but I expect going beyond that into the other resources could have much higher costs. Hey, you mine until your margin diminishes to almost nothing.

    Kipper,
    I am biased. I’ve run my numbers, probably fairly optimistically and come to the conclusion that if pon stays above A$9/lb, FF &SQ at least run their reserves out at good margins and Odysseus does at least a little better than the DFS then WSA is a fair t good investment below $2.50 (I am in at 2.45 average atm). I could be wrong, all pretty rough back of envelope stuff after a good bit of reading WSA material. Below $9 I will probably be a bit sad, above 11 laughing, and of course if there’s another large high grade orebody discovery (or two) better than laughing.

    I’ve found miners pretty high risk, with commodity prices defying all consensus, and generally share prices requiring you to expect some future unknown exploration success, or at least conversion of resources to reserves. You’ve got to guess quite a bit imho. Being allowed to guess is perhaps your only potential advantage over a broker analyst.

    I made very good money out of the last nickel bubble, mostly for all the wrong reasons, except perhaps doing a half decent job of comparative analysis of the numerous nickel companies then available on the ASX. Don’t expect to repeat it, and not prepared to stake so much on one or two investments again.

    EL
 
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