Volgens mij gewoon gelinkt aan koperprijs, FM steeg vandaag ook met 10%. Afin voor mij mag het. Reeds over de 100% winst op deze.
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Ik zit er in aan 0,65 cad, dan weet je het wel he!
Rio Tinto has agreed to subscribe for and purchase 11,808,490 common shares at a price of C$2.17 per share for aggregate gross proceeds of approximately C$25.6 million, resulting in Rio Tinto owning approximately 8.0% of Western's outstanding common shares.
"We are pleased to welcome Rio Tinto as a strategic investor in the Company," said Paul West-Sells, President and CEO. "The investment by Rio Tinto, a leading global mining group which operates in 35 countries around the world, and whose purpose is to produce the materials essential to human progress is a strong endorsement of the Casino Project. We look forward to working with Rio Tinto to advance Casino."
Western remains the sole owner of the Casino Project and will continue to be the operator. The Company will use the proceeds of the strategic investment to fund specific areas of study, which will form part of the feasibility study and permitting with the aim of progressing to a development phase for the Casino Project. The investment represents an opportunity for Rio Tinto to better understand the potential of the Casino Project.
In connection with the strategic investment by Rio Tinto, the Company and Rio Tinto will enter into an investor rights agreement, whereby, subject to certain conditions, including time and ownership thresholds, Rio Tinto will have certain rights, including the right to appoint:
one member to a Casino Project Technical Committee
one non-voting observer to attend all meetings of the board of directors of the Company
one director of the Company, if Rio Tinto's ownership increases to at least 12.5%
up to three secondees to the Casino Project
In addition, Rio Tinto will have a right to participate in future equity issuances to maintain its ownership in the Company and will be provided with a one-time "demand registration right" and "piggy-back registration rights."
Under the investor rights agreement, for a period of 12 months, Rio Tinto has also agreed:
not to sell, transfer, offer or otherwise dispose of any shares without first notifying the Company
to vote any shares in favor of each director nominated by the board of directors of the Company for election by shareholders
not to acquire any securities of the Company, subject to certain exceptions
The closing of the strategic investment is expected to occur on or about May 31, 2021 and is subject to regulatory approval, including that of the Toronto Stock Exchange and the NYSE American LLC. The common shares will be subject to a statutory hold period in accordance with applicable securities legislation.
RBC Capital Markets is acting as financial advisor to Western in connection with the strategic investment by Rio Tinto.
Western will host a conference call on May 17, 2021 at 1:00 pm (Pacific Time) for senior management to discuss this investment by Rio Tinto.
Toll-Free Number: 1-800-319-4610
International Callers: 1-604-638-5340
Conference ID: 10014814
Replay of the conference call is available at 1-800-319-6413 or 1-604-638-9010, access code 6977.
ABOUT WESTERN COPPER AND GOLD CORPORATION
Western Copper and Gold Corporation is developing the Casino Project, Canada's premier copper-gold mine in the Yukon Territory and one of the most economic greenfield copper-gold mining projects in the world. For more information, visit www.westerncopperandgold.com.
On behalf of the board,
Dr. Paul West-Sells
President and CEO
Western Copper and Gold Corporation
Maar Rio Tinto dat 8% neemt tegen een prijs mooi boven de beurskoers, daar kan je mee thuiskomen.
Als de volgende prospectieresultaten even veelbelovend blijven, gaat Rio Tinto niet lang meer afwachten lijkt me.
Bij een volledige overname door Rio Tinto zal er een veel hoger bod moeten komen.
Josymar? Jij hebt op mijn advies dit aandeel gekocht! hopelijk zit je er nog in, de tijd van oogsten komt eraan, en ja hoor, ik heb nog graag enkele jaren geduld, als er dan kan verkocht worden aan 5-7 cad.
Western Copper And Gold: Cheap Resources Start To Attract Some Serious Attention
May 18, 2021 9:05 PM ETWestern Copper and Gold Corporation (WRN)
Long Only, Commodities, Gold & Precious Metals, Base Metals
I am an associate professor at the University of Economics in Bratislava, Department of Banking and International Finance. My dissertation was focused on commodity markets and my habilitation was focused on the calendar anomalies. I have more than 15 years of investing experience. My investments mostly focus on small- and mid-cap companies in the resource sector.
The current market value of metals contained in Western Copper and Gold's resources is approximately $95.6 billion.
Western Copper and Gold is valued approximately at $5.19/toz of gold equivalent right now.
Rio Tinto emerges as a new potential acquirer or JV partner.
The PEA is still expected by the end of Q2.
Treasure chest filled with gold coins
Photo by fergregory/iStock via Getty Images
Several things have changed since February when I wrote the article about Western Copper and Gold (WRN). First of all, Western Copper's share price has grown by more than 60%. Back then, shares of the company were trading below $1.3 which resulted in a market capitalization of $160 million and enterprise value below $140 million. It means that the market valued 10.8 billion lb copper, 21.1 million toz gold, and 169 million toz silver (or slightly more than 45 million toz of gold equivalent) contained in the resources only at $3.1/toz of gold equivalent.
Today, Western Copper's share price stands at $2.07 and the market capitalization is nearly $280 million. After the recently announced equity financing is completed, the share count will grow from 135,797,635 to 147,606,125, resulting in a pro-forma market capitalization of $305.5 million. Assuming that the cash on hand will be around C$50 million ($41.5 million) (based on the Q1 cash position of C$27 million and proceeds from the equity financing worth C$26.5 million), the pro-forma enterprise value should be approximately $265 million.
However, the metals prices have changed considerably and the old calculation of gold equivalent ounces is much different at the current market prices. Right now, the gold price stands at $1,870/toz, copper price stands at $4.75/lb, and silver price stands at $28.5/toz. It means that the current market value of the contained metals is approximately $95.6 billion. And using the current metals prices, the deposit contains measured, indicated, and inferred resources of 51.1 million toz of gold equivalent. At the pro-forma enterprise value of $265 million, the market values each ounce of gold equivalent only at $5.19.
But probably the most important event that occurred over the recent months is the above-mentioned equity financing. Only yesterday, Western Copper announced that Rio Tinto (RIO) decided to make a C$25.6 million ($21.28 million) strategic investment. After the transaction is completed (expected around May 31), Rio Tinto will own approximately 8% of Western Copper. Yes, the deal brings some share dilution. However, it also brings a strategic investor with a famous name, rich experiences, and deep pockets.
It seems like Western Copper's huge resources are starting to attract some serious attention finally. Rio Tinto would hardly pay more than $20 million if it didn't believe in the potential of the project. Another positive sign is the terms of the transaction. The deal doesn't include any warrants, which is quite rare nowadays. Moreover, the shares were priced at C$2.17 ($1.8), when Western Copper's shares were trading at C$1.99 ($1.65). So Rio Tinto not only doesn't receive any warrants, but it also agreed to pay a 9% premium. Moreover, Rio Tinto agreed not to sell or acquire any new shares over the next 12 months (with an exception of applying its right to maintain its ownership in the case of any additional equity financings).
Rio Tinto will also have the right to appoint one member to the Casino Project Technical Committee, and one non-voting observer to attend all meetings of the board of directors. If Rio Tinto grows its equity stake to 12.5%, it will also obtain one director seat.
Rio Tinto's strategic investment is important news, as it means that Rio Tinto emerges as a serious potential acquirer or JV partner. The 2013 feasibility study estimated the initial CAPEX at $2.34 billion. It means that Western Copper and Gold will hardly be able to build the mine on its own. Also the news release indicates that a bigger deal with Rio Tinto might be brewing, as it states:
The investment represents an opportunity for Rio Tinto to better understand the potential of the Casino Project.
The Casino mine was projected to produce 171 million lb copper, 266,000 toz gold, 1.43 million toz silver, and 15.5 million lb molybdenum (or 813,000 toz of gold equivalent) per year, over the 22-year mine life. The AISC was estimated at approximately $620/toz of gold equivalent. The after-tax NPV(5%) was projected at $2.84 billion and the after-tax IRR at 20.1%. However, all these numbers apply for base-case metals prices of $3/lb copper, $14/lb molybdenum, $1,400/toz gold, and $25/toz silver. Moreover, the feasibility study is 8 years old. Some more up-to-date numbers should be provided by the PEA that is still expected by the end of Q2.
Western Copper's share price jumped up by 25% following the Rio Tinto investment announcement. At $2.07, the shares trade at the highest price since February 2012. The 10-day moving average is safely above the 50-day one and trending higher, and the share price is safely above both the moving averages. Little worrying is the RSI that is close to 80, deep in the overbought territory.
The fundamentals are very good. Even after the recent run, Western Copper and Gold remains very cheap. Moreover, the Rio Tinto investment brings a strong player onboard. Rio Tinto is a very serious potential acquirer or JV partner now. With a major catalyst in the form of the PEA study expected soon, further share price growth is probable in the near term.
Voor wanneer is de volledige overname van WRN door Rio Tinto een feit? En vooral, aan welke prijs, ik reken toch op minimaal 4,5 cad per aandeel!