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Online Share Trading

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Anyone still holding this?

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Mr_S
Super Contributor
Couldnt help but wonder with the results coming out who is still holding wez? what happened to this being one of the shares one slowly buys and forgets about...many ppl incl me got burnt with this one.....also, something about the chinese makes me a little uncomfortable. Something tells me they might be looking out for their own best interests and not so much for the shareholders....what you think?
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9 REPLIES 9
Major
Regular Contributor
My view is that the Chinese will fast track the mine development, which will be of benefit to all shareholders. It's still a decent project, and undervalued at these levels using NPV. but it's not easy to see what will trigger a share re-rating, since the Chinese don't really care about the share price - they're more interested in the production offtake.
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Not applicable
how on earth do you calculate the NPV of a non-producing mine? It is a totally irrelevant figure, IMO. You have no idea of the actual yield, actual reserves, how much it will cost to extract, and most important of all, how much extra capital will be required to mine. And as for Chinese offtake agreements, at what price will they sell their product? Because that will be the be-all and end-all of the mine's profitability, if it can't sell its product on the open market?
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THRESHOLD
Super Contributor
An off-take agreement is something you are held to in the good times; BUT something the counter-party ("taker") walks away from in the bad times. AND the Chinese are famous for this. A quality piece of platinum bearing land may be a better investment than a mine if you believe in the long-term future for platinum.
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Major
Regular Contributor
I'd say it's relevant, but you're correct in saying that it's based on a whole load of assumptions which will have varying degrees of accuracy. Better than a thumbsuck.
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Not applicable
Don't follow this share, but, what is the definition of a mine? A hole in the ground with a liar on top.
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THRESHOLD
Super Contributor
Tell Mr. Twain that WEZ doesn't even have a hole to stand in.
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Not applicable
They probably have quite a few small ones where their core samples were removed from. But Twain probably will regard those with disdain...
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SimonPB
Valued Contributor
well no, assumptions are just fancy thumbsucks ..
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Not applicable
Brilliant! Can I quote you?
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