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donnie
01-03-2007, 11:59 AM
The next drilling these guys do seems pretty good. worth a read

http://www.asx.com.au/asxpdf/20070301/pdf/31183qr5pcx41j.pdf

Corporate
04-01-2011, 05:04 PM
Well I'm bringing this one up from the dead. Name changed to WPG Resources Limited.

Very undervalued in my view.

Fully cashed up (recent raising and $120m facility) to bring their Iron Ore asset into productions during 2011. Net operating cashflow should be approximately $200m PA.

Top 20 owned 60% and Directors 18%

Good post by Aksier on HC...

WPG Resources Limited (WPG): The company has recently finalized the equity portion of funding for their Peculiar Knob direct shipping iron ore operation. The project has a resource which is one of the highest grade and lowest impurity deposits in the country. The NPV for the project is around $1.50 per share based on the projected production rate of 3mtpa commencing in late 2011. Further upside should come from the Hawkes Nest DSO project which adds around $1.00 to my valuation. Blue sky projects include the Penrhyn Coal Project and a large Hematite and Magnetite BIF (Banded Iron Formation)iron ore project which are the subject of a $50m JV funded by Wisco. Provided the company delivers on its timeline for the development of the PK deposit, I expect a substantial re-rating to occur this year.

DYOR - I'm in today

Huang Chung
04-01-2011, 07:47 PM
Well I'm bringing this one up from the dead. Name changed to WPG Resources Limited.

Very undervalued in my view.

Fully cashed up (recent raising and $120m facility) to bring their Iron Ore asset into productions during 2011. Net operating cashflow should be approximately $200m PA.

Top 20 owned 60% and Directors 18%

Good post by Aksier on HC...

WPG Resources Limited (WPG): The company has recently finalized the equity portion of funding for their Peculiar Knob direct shipping iron ore operation. The project has a resource which is one of the highest grade and lowest impurity deposits in the country. The NPV for the project is around $1.50 per share based on the projected production rate of 3mtpa commencing in late 2011. Further upside should come from the Hawkes Nest DSO project which adds around $1.00 to my valuation. Blue sky projects include the Penrhyn Coal Project and a large Hematite and Magnetite BIF (Banded Iron Formation)iron ore project which are the subject of a $50m JV funded by Wisco. Provided the company delivers on its timeline for the development of the PK deposit, I expect a substantial re-rating to occur this year.

DYOR - I'm in today

Corporate, I had a quiet chuckle when I read your post at work today. I too was trolling throught the HC 'top 5 picks for 2011' thread, and likewise thought Askier's pick of WPG was a standout. Further research over the weekend confirmed my initial thoughts.

I also bought in this morning, averaging 72.7c.

Lets hope we can put this one into the Great Minds Think Alike catagory.....

Corporate
04-01-2011, 07:59 PM
Huang Chung, WPG is just another one of those stocks where you know in your gut, that it is a stand-out buy!

Like you, I did my research over the weekend. But had my eye on a few other stocks and didn't buy early in the morning. Ended up with an average of 73.5c. Not that it really matters.

Corporate
06-01-2011, 05:42 PM
Nice to see this one close at 80c after giving it a crack once or twice in the last couple of days.

Huang Chung
06-01-2011, 07:23 PM
Yeah Corporate, I'm enjoying the ride.

Plenty more to come me thinks.....

Corporate
06-01-2011, 07:32 PM
slow and steady I like it....none of this 50% jump in a day. 4-5% everyday is fine by me :-)

Corporate
11-01-2011, 01:31 PM
This had a couple of attempts are breaching 80c and failed. I sold on Friday at 78c, and now looking for a re-entry.

Corporate
12-01-2011, 04:26 PM
Back in today :-)

Corporate
15-01-2011, 09:30 AM
3160

I'm not huge on TA. But there is something familiar about current trading and what happened in June/July 2010. Except the OBV has taken off and the volume is comparatively huge.

Huang Chung
15-01-2011, 09:46 AM
I'm most likely to just ride this one Corporate.

On balance, I think we have far more chance of steadily moving up than down over the next few months.

Corporate
15-01-2011, 09:50 AM
Hey Huang Chung

Yeah I sold my first lot of WPG at 78c and repurchased on the 12th at 75.5 - nice to be in the green so quickly. I think it will be over $1 shortly.

Corporate
19-01-2011, 06:22 PM
And lift-off! Highest volume of the year.



3178

Huang Chung
19-01-2011, 08:39 PM
Go at throttle up.....

Huang Chung
18-02-2011, 07:46 PM
Interesting article by Barry Fitzgerald from The Age newspaper.

http://www.smh.com.au/business/hopefuls-need-access-ore-risk-losing-out-20110216-1avit.html

Anna Naum
18-02-2011, 08:21 PM
Very interesting article. Worth the read. Thanks HC

Corporate
31-03-2011, 07:25 PM
I still really like WPG and am looking for an entry point. To my untrained it looks like the OBV has turned up and I'd appreciate someone my skilled in the art of TA to comment (hint hint Phaedrus)?

Cheers,
C

Phaedrus
31-03-2011, 09:48 PM
Well, Corp, WPG has been showing some signs of life as you can see from the 2 recent Buy signals. These would probably be better categorised as encouraging rather than definitive and of course WPG is still in a "medium-term" (2 month) downtrend. The most prudent thing for you would be to delay buying until WPG breaks above the resistance at 71 cents, ending the downtrend and beginning a new medium-term uptrend, and breaking the existing trendline as well.

The last 2 days have been Dojis so the market is showing obvious indecision at this point.

I suppose if you really like this stock and want quite a few, you could embark on a structured buying program, purchasing 1/4 on the MA break, 1/4 on the resistance break, 1/4 on the RMI buy signal and 1/4 on the trendline break. How prudent do you want to be?

http://i602.photobucket.com/albums/tt102/PhaedrusPB/WPG331.gif

Corporate
05-04-2011, 05:42 PM
Thanks P - I'm watching with interest :-) appreciate the chart

Corporate
06-04-2011, 03:38 PM
And back in WPG today!

Joshuatree
06-04-2011, 10:19 PM
Nice timing corporate ;up 7% plus today. Like the DSO and plentiful funding. Im still a little in the red but not for long methinks ,cheers.

Phaedrus
07-04-2011, 09:34 AM
Just for you, Corp!

It is interesting to note that, while all those February Sell signals triggered on the same day, the recent Buy signals were spread out over a 3 week period. I have numbered them in the order in which they fired.
Note the increasing volume (green bars) as the uptrend gathers steam.

http://i602.photobucket.com/albums/tt102/PhaedrusPB/WPG47.gif

Corporate
07-04-2011, 11:21 AM
Phaedrus I love the strategy of combining TA with FA. I got in at an average of 72c yesterday and we are currently sitting at 77.5c

drillfix
07-04-2011, 11:35 AM
Good stuff there Corp,

Got an exit strategy? Plus are you going to tip the TA guy now that you know your on the right side of the trade...LOL :P

Corporate
03-05-2011, 02:44 PM
SYDNEY (Dow Jones)--Australia will open its Woomera Prohibited Area, a closed area of the country's barren outback nearly as large as Greece, to mineral development that could be worth up to A$35 billion, the country's government said Tuesday.

The 127,000 square kilometer prohibited area--a missile testing range built around the site where the U.K.'s first atomic bombs were tested in the 1950s--is largely closed
to the public, although local Aboriginal communities and some livestock farmers have access to portions of the South Australian site.

Completing a review of the area's status, the government said it would introduce a time-share model whereby users of the area other than Australia's Department of Defence would be able to have access to the region, which is prospective for iron ore, gold, uranium and copper.

"The Woomera Prohibited Area has great economic potential, with estimates that more than $35 billion of developments, including iron ore, gold and uranium projects would be possible over the next decade," the country's resources minister Martin Ferguson said in a statement.

The prohibited area contains parts of the Gawler and Stuart cratons, which contain significant reserves of base metals such as BHP Billiton Ltd.'s (BHP) Olympic Dam mine and OZ Minerals Ltd.'s (OZL.AU) Prominent Hill site.

The attempted takeover of OZ Minerals by China's state-controlled China Minmetals Non-Ferrous Metals Co. in 2009 hit a hurdle when Australia's Treasury ruled that Minmetals couldn't take control of the Prominent Hill mine because of its location within the prohibited area.

Corporate
03-05-2011, 09:22 PM
I like it...



3369

macduffy
04-05-2011, 10:45 AM
Here's WPG's announcement re the final report.

http://asx.com.au/asxpdf/20110504/pdf/41yfzjytz3g945.pdf

Disc: Holding WPG.

macduffy
04-05-2011, 04:45 PM
Anyone interested in WPG should have a look at their presentation yesterday to a SA resources conference. It was put together before the govt announcement re the Hawke report on mining in the the Woomera PA but there is an audio available of the Exec Chairman's commentary in which he updates the video in the light of the news.

Shareprice did the right thing today and moved up nicely!

Corporate
04-05-2011, 05:07 PM
Glad I have a stack of these!

10 years of DSO reserves. Mining to commence Q4/2011!! Fully funded.

This should head back towards 1.05 very quickly.

The most recent presentation was awesome. Check out the potential revenue...and this was prior to the Govt opening up Woomera.

Corporate
04-05-2011, 05:14 PM
http://www.hotcopper.com/post_threadview.asp?fid=1&tid=1451167&msgno=6672146#6672146

Corporate
04-05-2011, 05:25 PM
http://www.hotcopper.com/post_threadview.asp?fid=1&tid=1451167&msgno=6672146#6672146

Sorry for all of the posts but this is absolute gold! Hawkes Nest requires little or no additional capex and it doubles the DSO reserve. It was also mentioned at least twice that there are DSO exploration targets to increase the JORC reserve.

Closed at 86c..nice

Corporate
14-05-2011, 08:16 AM
The price has slid back into the high 70's....but this is a no brainer. Currently sitting at 14% of my portfolio and buying to increase to 20%.

Check out this research report

http://www.wpgresources.com.au/pdf/Veritas%20Research%20Report%209%20May%202011.pdf

macduffy
14-05-2011, 08:35 AM
Thanks, Corporate.

Good report but a pity that Veritas use that obscure, difficult to read font!

Just a random thought but I wonder if the old name, "Western Plains Gold" isn't helping at the present time. The new name is of course "WPG Resources", iron ore is the focus and "gold" is a historical relic as far as the company is concerned.

I'm holding.

Corporate
14-05-2011, 11:13 AM
Thanks, Corporate.

Good report but a pity that Veritas use that obscure, difficult to read font!

Just a random thought but I wonder if the old name, "Western Plains Gold" isn't helping at the present time. The new name is of course "WPG Resources", iron ore is the focus and "gold" is a historical relic as far as the company is concerned.

I'm holding.

Yeah agreed. How do we change the name?

Guys this is an iron ore company which will produce 3.3mtpa next year moving towards 5mtpa of the highest quality undeveloped iron ore in Australia!

They are fully funded
Have access to rail and port
Dividend payment aspiration

and....have essentially just had their DSO reserves doubled for no additional capex!

macduffy
18-05-2011, 11:17 AM
Progress towards mining at Peculiar Knob - lovely name, that! - moving along nicely.

http://asx.com.au/asxpdf/20110518/pdf/41yq9r9lq4k1b6.pdf

Corporate
29-05-2011, 04:13 PM
Has anyone else looked into WPG? I know there is commissioning risk and approval risk, but check out the cash flows on 5.0mtpa!!

Research report again..http://www.wpgresources.com.au/pdf/Veritas%20Research%20Report%209%20May%202011.pdf

Huang Chung
29-05-2011, 06:05 PM
I was a holder for a while, but not right now.

I believe cost of production will be something like $83/tonne?? Should be nicely profitable for the next few years, but when those big projects in the Pilbera come on stream, I'd be keeping a very close eye on the iron ore price.

Corporate
29-05-2011, 06:19 PM
I was a holder for a while, but not right now.

I believe cost of production will be something like $83/tonne?? Should be nicely profitable for the next few years, but when those big projects in the Pilbera come on stream, I'd be keeping a very close eye on the iron ore price.

Hi HC, the company expects cash operating costs of $63/tonne so quite a lot lower than $83/tonne. Agreed there are a lot of projects to come on stream but WPG's margin should still be profitable.

Huang Chung
29-05-2011, 06:35 PM
From their March 2011 presentation they indicate on P13:

LOM ave cash opex $66/t
Royalties $6/t
Sea Freight $17/t
TOTAL $89/t

They emphasised that sea freight rates had dropped, so I presume it's the seller, not the buyer, who picks up the tab for this.

shasta
29-05-2011, 07:52 PM
From their March 2011 presentation they indicate on P13:

LOM ave cash opex $66/t
Royalties $6/t
Sea Freight $17/t
TOTAL $89/t

They emphasised that sea freight rates had dropped, so I presume it's the seller, not the buyer, who picks up the tab for this.

Coporate

Have a look at HEM, HC started the thread & the company is now on the LOW EV list, near term DSO production possibly in 2013

MCap @ $0.265, ~$19m, with $10m cash & 40m AAJ shares, EV = $5.5 share price has dropped off but recent presentation shows its potential

macduffy
30-05-2011, 11:08 AM
Market update from WPG.

http://asx.com.au/asxpdf/20110530/pdf/41yxn0x36rhk37.pdf

I'm holding a few WPG but agree with HC that we need to be conscious of their costs of production. I'm also getting a little nervous about any of my wannabe miners who are still in the exploration stages. Anything without firm plans for production in the next couple of years is going to be either culled or put on a tight stop loss - a bit of insurance against the possibility that this resources boom may end abruptly.

Corporate
30-05-2011, 12:16 PM
Coporate

Have a look at HEM, HC started the thread & the company is now on the LOW EV list, near term DSO production possibly in 2013

MCap @ $0.265, ~$19m, with $10m cash & 40m AAJ shares, EV = $5.5 share price has dropped off but recent presentation shows its potential

Thanks shasta, do you know what size the DSO resource is?

macduffy
30-05-2011, 02:12 PM
On shasta's unauthorised behalf!

HEM announced a maiden indicated resource at Yandicoogina South of 4.3 mt on 16 February. Appears to be the only JORC resource at this stage.

shasta
30-05-2011, 03:18 PM
On shasta's unauthorised behalf!

HEM announced a maiden indicated resource at Yandicoogina South of 4.3 mt on 16 February. Appears to be the only JORC resource at this stage.

Whats ^ said! ;)

Its not a big resource, but they seem pretty confident it will grow via there drilling program & they will fast track it into production, whether that happens or not, they are certainly not standing still!

Corporate
30-05-2011, 05:31 PM
Whats ^ said! ;)

Its not a big resource, but they seem pretty confident it will grow via there drilling program & they will fast track it into production, whether that happens or not, they are certainly not standing still!

Thanks, all. I will put it on the list to research tonight!

Corporate
06-06-2011, 08:19 PM
http://www.wpgresources.com.au/pdf/Austock%20Research%20Report%203%20June%202011.pdf

Latest research report

drillfix
06-06-2011, 09:31 PM
Looks nice Corp.

But its the things that they dont tell you that are the things that you gotta try to look out for, as we found out with PLV today.

Have had WPG on the watch list on and off for a while now. Will leave it to see how the climate fares over the next few weeks.

macduffy
10-06-2011, 01:44 PM
WPG has today signed the agreement with Evergreen Energy to produce "KFuel", a coal upgrading technology.

http://asx.com.au/asxpdf/20110610/pdf/41z4t2wn4cb4xs.pdf

macduffy
14-06-2011, 11:02 AM
Formal Commonwealth approval received for Peculiar Knob.

http://asx.com.au/asxpdf/20110614/pdf/41z64jskwqp059.pdf

macduffy
01-07-2011, 03:46 PM
Approvals for the Peculiar Knob project moving along nicely.

http://www.asx.com.au/asxpdf/20110630/pdf/41zhj9vg7qy52d.pdf

SP moving up into the 80's.

Corporate
01-07-2011, 03:57 PM
Approvals for the Peculiar Knob project moving along nicely.

http://www.asx.com.au/asxpdf/20110630/pdf/41zhj9vg7qy52d.pdf

SP moving up into the 80's.

Very stoked. One of the only shares of mine that didn't get hammered over the last few weeks

Corporate
06-07-2011, 04:15 PM
WPG goes higher, testing 90c out!

whirly
06-07-2011, 04:33 PM
A bit late to the party but I got in today at 87

Corporate
06-07-2011, 04:56 PM
A bit late to the party but I got in today at 87

whirly, you won't be thinking that when we are reaching $1.40+

I'm sitting happily at 72c, wish I'd bought a few more as always :-)

drillfix
06-07-2011, 05:23 PM
A bit late to the party but I got in today at 87

Nahh whirly, no such a thing as late, as thats a good buy spot which is higher than the previous high so a logical entry really on an uprising stock.

EMA's lining up on the daily, riding upwards on the 13ema nicely on the 60min chart with the next target being 94.5c

Sounds like a fine life atm, so kick back and enjoy (imo)

dis: not holding

whirly
06-07-2011, 05:58 PM
Thanks for your positive replies. I've been knocked about a bit in the last couple of months so my lesson from that is to work on my exits. I have also plugged for WPG because my microcaps while providing good upside when they move unfortunately move too quickly for me when they fall.

drillfix
06-07-2011, 06:34 PM
Thanks for your positive replies. I've been knocked about a bit in the last couple of months so my lesson from that is to work on my exits. I have also plugged for WPG because my microcaps while providing good upside when they move unfortunately move too quickly for me when they fall.

I think we all have had a bit of a whipping previously Whrily so your not alone on that. I am glad I primarily got out as much cash as I could from suspecting there would be a major decline, so had cash out, and then had several or many bad trades due to not being able to walk away and keep my hand out of the cookie jar so to speak.

And yes, aint that the truth about some of these smaller stocks, they gift you and then whip and then tie up all your money if your not careful.

With smaller stocks whirly, I myself am now becoming more inclined to take smaller positions sizes as you cant get hurt as much from such swings. If you find your on the right side of the trade with some movement, then add to it accordingly, but initially, dont buy the hype so to speak, watch the daily move and if it rolls in your favour, then add to it, as at least this way you can buffer yourself, plus if your then up on the trade and you can see that buyers are running you can notice earlier that you have got it wrong and have time to exit.

Good luck with this trade.

whirly
07-07-2011, 09:57 AM
Sage advice Drillfix. I was actually referring to my sub 10c stocks as the micro-cap fast movers so am looking at higher volume/sp to give me a bit of leeway when the daytraders start dumping. WPG looks abit safer and on this good announcement just released I hope your right Corporate.
http://www.asx.com.au/asxpdf/20110707/pdf/41zn4cl06glrhg.pdf

whirly
08-07-2011, 10:26 AM
More good news from WPG. Following on from yesterdays coal upgrade announcement just released regarding WPG's flagship iron ore mine. The South Australian govt have approved their mining and rehab programme so we will shortly be producing.

http://www.asx.com.au/asxpdf/20110708/pdf/41znsh7kys2v6p.pdf

Corporate
08-07-2011, 10:46 AM
More good news from WPG. Following on from yesterdays coal upgrade announcement just released regarding WPG's flagship iron ore mine. The South Australian govt have approved their mining and rehab programme so we will shortly be producing.

http://www.asx.com.au/asxpdf/20110708/pdf/41znsh7kys2v6p.pdf

This news should push the share price well into the 90c range. I'm sure you're glad you got in now whirly!

whirly
08-07-2011, 11:38 AM
I am that Corporate. I'm even happier I've been buying PDI under 20 though.

Whirly

macduffy
08-07-2011, 03:30 PM
More good news from WPG. Following on from yesterdays coal upgrade announcement just released regarding WPG's flagship iron ore mine. The South Australian govt have approved their mining and rehab programme so we will shortly be producing.

http://www.asx.com.au/asxpdf/20110708/pdf/41znsh7kys2v6p.pdf

Yes, looking good for the company with Australia's highest grade undeveloped iron ore deposit!

http://news.theage.com.au/breaking-news-business/peculiar-knob-gets-sa-govt-approval-20110708-1h5ui.html

macduffy
12-07-2011, 12:34 PM
For what it's worth, an extract from a recent interview with Tony Smith of Austock.

"Tell me about some of the other smaller resource companies in your preferred list.

A company that we’re very comfortable with at the moment is WPG Resources (WPG).


That’s the old Western Plains Group with iron ore deposits in the Woomera, isn’t it?

Yes. If you have a look at it, it stayed pretty steadfast throughout the recent turmoil in markets after the capital raising at 68¢. The reasons we like it is because it’s got good management and it’s got some very good assets, but some of the assets are tied up in the Woomera prohibited area, which is in the process of being released.

We like WPG because the particular grade of their assets is superior to the rest of the market. We also think it’s priced for the asset they’re going to produce and you have optionality on the prohibited area. So if we go back to those three things we look for – good management, good business and good cash flow – we can see the cash flow coming so we’re comfortable in buying it. "

I'm holding WPG.

Corporate
15-07-2011, 11:41 AM
Buzzard to be fast tracked, 5mtpa here we come!

whirly
15-07-2011, 02:11 PM
Buzzard to be fast tracked, 5mtpa here we come!

Shame someone had to spoil the party yesterday by dumping on us. I actually tried to buy more at 84 during the dumping but that was just too cheeky. Now I'm trusting those bots aren't preparing us for another dump.

Corporate
15-07-2011, 03:54 PM
Shame someone had to spoil the party yesterday by dumping on us. I actually tried to buy more at 84 during the dumping but that was just too cheeky. Now I'm trusting those bots aren't preparing us for another dump.


This is huge. Refer to some of the analyst reports I posted which incorporate 5mtpa...it's BIG cashflow :-)

Corporate
15-07-2011, 05:00 PM
http://www.wpgresources.com.au/pdf/Veritas%20Research%20Report%209%20May%202011.pdf

care of sun on HC

macduffy
18-07-2011, 11:42 AM
WPG signs its first long term contract for the sale of "Coober Pedy superior fines".

http://asx.com.au/asxpdf/20110718/pdf/41ztdtx0zq0yqq.pdf

drillfix
18-07-2011, 04:15 PM
As in earlier seen by the world a contract is a cantract but perhaps it should have said, cantspell

I think somebody from WPG needs to learn how to spell. :P

macduffy
21-07-2011, 10:31 AM
Presentation today to Australian Stockbokers' Ass.

http://www.asx.com.au/asxpdf/20110721/pdf/41zwgzjk102055.pdf

But beware of typo on p7!

Corporate
21-07-2011, 05:45 PM
97c is nice too :-)

Corporate
22-07-2011, 12:08 PM
On the move again today, $1 party!

Corporate
26-07-2011, 07:00 PM
Nice close at $1.055 today. I wonder how much higher this will go. Everyone still holding tight?

Rif-Raf
26-07-2011, 08:04 PM
yes and why wouldnt you if you read the latest presentation. Near term revenue and massive potential once they have 2 plus projects onstream.

whirly
27-07-2011, 09:42 AM
Yep still holding. Don't see any reason to sell today! But we are at important resistance and if it breaks through we are on our way to 1.20

macduffy
22-08-2011, 11:17 AM
Nice payday for WPG holders coming up!

WPG to sell iron ore assets to OneSteel and to make a capital return and dividend payment to shareholders. On present indications this will exceed $1ps - more than last Friday's closing SP of 88.5c. WPG shareholders will retain exposure to the coal assets

Disc: Holding WPG.

drillfix
22-08-2011, 11:23 AM
Yeah Mcduffy,

Wow, talk about Gap Up, some excellent news.

Was temped before with the markets decline, but am partially reluctant now as its turning into a big red candle which traders have now obviously jumped all over this.

mark100
22-08-2011, 11:35 AM
The key here is the deal condition on All Ords not falling below 3650 otherwise OST may try and re-price. If that holds, expect a run up prior to the dividend as investors seek out the franking credits. That is what I will be trying to play

Felix
22-08-2011, 10:03 PM
It will be interesting to see the full details of the $1 per share 'tax-effective cash distribution' to shareholders. As a NZ resident I understand that we can't take advantage of Australian franking credits therefore we'd need to pay tax on the dividend? What about the return of capital portion? I guess we'll need to wait for the details. It would have been much cleaner if OneSteel had just offered, say, $1.50-$1.60 to take over of the company.

I do wonder whether this is the best offer they could get for the assets. Hopefully this flushes other potential bidders out of the woodwork with superior offers.

macduffy
23-08-2011, 01:58 PM
There's always the chance of a superior offer but WPG's ore is "close" to OST's port facilities and arguably worth more to them than to anyone else. Best hope would be if it transpires that OST's offer is a low ball one at this stage, encouraging another party onto the scene.

Here's hoping!

mark100
23-08-2011, 02:09 PM
Deutsche Bank's note on OST this morning reckons they were overpaying for WPG's resource because of potential $75/t production costs. Their conclusion was OST must be assuming higher iron ore prices going forward. Hmmm, that was a smart conclusion...

soulman
24-08-2011, 02:17 AM
Looks like WPG might be distributing more than $1 to me. We need to see a done deal and scheme booklet before going for that conclusion. WPG will still be a trading company after the distribution with the coal asset on hand and $10's of millions left in the bank for exploration and admin and no debt. I have re-enter and hopeful that the Onesteel deal will go through.

macduffy
24-08-2011, 03:07 PM
I havn't seen an announcement about this from WPG yet.

http://www.marketwatch.com/story/evergreen-announces-initial-testing-results-of-penrhyn-coal-2011-08-23

(Courtesy of another place.)

Maybe there's quite a bit of value in those coal assets!

macduffy
25-08-2011, 08:15 PM
Here's WPG's own report on the Penrhyn coal tests.


http://asx.com.au/asxpdf/20110825/pdf/420m7tbjxq6lvc.pdf

macduffy
02-09-2011, 01:49 PM
WPG trading up to $1.23 today.

Seems the market is expecting the return to shareholders from sale of the iron ore assets to comfortably exceed the $1 minimum that the company foreshadowed. Either that or the value of the remaining coal assets has been re-thought. Either way, good for shareholders!

mark100
02-09-2011, 02:03 PM
macduffy, details of the capital return, dividend and franking credit have been released today, hence a bit more certainty for the market. All up $1.05 cash to be paid and a 27c franking credit

macduffy
02-09-2011, 03:16 PM
Thanks, mark.

$1.05 doesn't represent a "comfortable" margin as I'd hoped but obviously the franking credit has a value for Aussie investors. Introduces another question for Kiwis - does one sell into this strength or is there going to be in excess of 18c value in the coal assets?

mark100
02-09-2011, 03:27 PM
I got in at $1.11 last week but out this morning on the news. While I get the value of the franking credits I don't know how the market will value the rump. It will only have $13m cash which won't go far when the assets are years away from production

macduffy
02-09-2011, 03:58 PM
I'm out too. Will leave someone else to the coal assets!

soulman
02-09-2011, 04:30 PM
I was out yesterday. Should have wait for another day to see the exact return.

Felix
02-09-2011, 10:35 PM
Yes sadly I think for NZ shareholders in WPG it is probably better to sell out of the company rather than take the dividend/capital return. We don't get the benefit of the franking credits and the current share premium of 18c implies a value of $45m for what will be left of the company, which just seems a tad high. Pity though, I would have looked forward to seeing such a large cheque come through the mail from Australia.

This sort of outcome produces two feelings. Obviously it is really good having picked a winner and getting a nice return. On the other hand it is frustrating researching and finding that winner only for it to sell itself short.

The booklet released today sure does a great job of selling the merits of the deal, but what I like the most is how the directors scare the shareholders with all of the bad things that could happen if the deal doesn't take place - iron ore prices forecasted to reduce significantly, there might be development over spending, share price will fall etc. Yet you don't hear any of that when the company is trying to sell their project to the investor and broker community. It is all about the positives, investing with the company is a no-brainer becaused the project is a guaranteed winner etc.

macduffy
03-09-2011, 07:42 AM
[QUOTE]This sort of outcome produces two feelings. Obviously it is really good having picked a winner and getting a nice return. On the other hand it is frustrating researching and finding that winner only for it to sell itself short[/QUOTE

Yes, it is frustrating but that's just the nature of equity investing. Success attracts predators, although that's perhaps a bit harsh in these circumstances where Onesteel have a sound longterm reason to be attracted to the ore.

As far as WPG's explanatory statement is concerned, there is a similar obligation on directors as for a prospectus to point out the potential downside of a proposal, both for and against. A fair bit of legal backside covering too, of course!

Best to accept the challenge to try to find the next winner! Suggestions welcome!

Corporate
04-09-2011, 09:02 AM
I bailed this one a bit early during the market turmoil at 103c. Although I got in around the 70c range so was pretty happy with that. I would have liked to have seen WPG pring PK into productions.

Now on the look out for another near term producer?

Corporate
08-09-2011, 02:00 PM
If anyone is looking for another near term producer, AJM is worth a look. I've just bought 60,000 this morning

Coal production during 2012

Iron Ore production during 2013 - 30% of AGO's Mt Webb DSO Iron Ore deposit which forms a large portion of their plan to reach 12mtpa in 2012/13

Large lithium resource

Management own about 40%

95% of options just converted

Large cash balance $30m

Market cap $78m

snackpack
08-09-2011, 04:54 PM
Cheers for the analysis regarding the implications of the dividend. I wasn't sure how to work out the resulting share price. After doing the math, I bailed today. Maybe a little early based on the slow rise recently, but I have a good gain and am happy.

soulman
08-09-2011, 05:34 PM
Not a bad price snackpack. I think future rises in WPG will be dictated by the 63 cents FF div and the 27 cents franking credit value. Also, for fund manager to create losses on the deal with the 42 cents capital return vs their capital entry.

Plus a new coal coy to boot. Another month to go before the vote. I sold at $1.21 last week.

Corporate
09-09-2011, 05:17 AM
If anyone is looking for another near term producer, AJM is worth a look. I've just bought 60,000 this morning

Coal production during 2012

Iron Ore production during 2013 - 30% of AGO's Mt Webb DSO Iron Ore deposit which forms a large portion of their plan to reach 12mtpa in 2012/13

Large lithium resource

Management own about 40%

95% of options just converted

Large cash balance $30m

Market cap $78m

Great summation from Aksier on HC here....http://www.hotcopper.com.au/post_threadview.asp?fid=1&tid=1459166&msgno=6725497#6725497

Corporate
16-10-2011, 04:03 PM
Anyone still holding WPG? Trying to work out if its now good value at 10.5c. Looks like cash backing will be 5c ish.

drillfix
17-10-2011, 05:37 PM
Hi Corp,

Mate, what is the actually story with this stock now. I used to follow it a while back but briefly have some idea that they sold some thing but what is the 10c value or drop to thereabouts in aid of?

You reckon the stock is only worth 5c? Can you see this falling to that?

Would like to know the story of what, who, when, where and why if anybody can provide a quick version of it.

Cheers~!

Corporate
17-10-2011, 05:59 PM
DF

I traded in and out of WPG a couple of times succesfully between 70c - $1. They were bringing their Iron Ore asset into production, which OST took a liking too. Subsequently WPG sold Percular Knob for $340m. At the same time management committed to returning the cash to shareholders via a capital repayment and dividend. This totalled $1.05 and is the reason for the decrease from $1.20 to $0.10.

Once the transaction is fully completed WPG will have about 5c per share in cash, plus their coal assets.

I'm really not sure where this one will go. There is a large amount of buyers at 10c which may be the bottom.

drillfix
17-10-2011, 10:35 PM
Well done on the trades there Corp.

I noticed the large Qty on the buy side at 10c and was considering a small position but think I will watch it for a while and see what happens.

Cheers~!

macduffy
18-10-2011, 09:37 AM
I sold my WPG once the sale of the iron ore assets was confirmed. Peculiar Knob etc were reputed to be the best undeveloped iron ore deposits in Australia and were the attraction for me in buying WPG originally.

But WPG have another string to their bow in the Penrhyn coal deposits and their agreement with Evergreen via a JV to use that company's "coal enhancement" technology. Tests have been encouraging with further test results due (overdue?). Might be worth another small punt.

http://www.asx.com.au/asxpdf/20110825/pdf/420m7tbjxq6lvc.pdf

Seems there was a later test announcement. Penrhyn coal can be "upgraded to export quality", so that info is presumably reflected in the current SP.

http://www.asx.com.au/asxpdf/20110915/pdf/42131cswrf13nf.pdf

drillfix
18-10-2011, 10:49 AM
Thanks for that Macduff, will take a look. And well done on your exit~!

soulman
18-10-2011, 04:37 PM
Last announcement I read is that WPG have approx. $87 mil in the bank and approx. $71 mil tax liability to pay in APR 2012. Don't know whether execs for WPG have freeze their salary since they all cashed out massively on their options and shares with the $1.05 returns.

Just got a bite at 10.5 cents.

soulman
19-10-2011, 06:53 PM
The bite works. Second bite at 12 cents. Looks to me if they have $87 mil, they should be making at least $100K a week on interest until the TAX payable in APR next year. That's about $2.5 mil earned in interest. There will be some money drawn for the coal projects. They only have 50% interest in them and might strike more quality coal. Mrt Cap (12 cents) currently at $31 mil.

whirly
25-10-2011, 10:27 PM
If anyone is looking for another near term producer, AJM is worth a look. I've just bought 60,000 this morning

Coal production during 2012

Iron Ore production during 2013 - 30% of AGO's Mt Webb DSO Iron Ore deposit which forms a large portion of their plan to reach 12mtpa in 2012/13

Large lithium resource

Management own about 40%

95% of options just converted

Large cash balance $30m

Market cap $78m

Thanks for that one Corporate. I bought a good chunk today @16.5 The chart looks to be turning around at last.

Corporate
26-10-2011, 05:51 AM
Thanks for that one Corporate. I bought a good chunk today @16.5 The chart looks to be turning around at last.

No worries. If you haven't, read ago's quarterly report where they say that mt webber is there highest priority and will be managements main focus as part of horizon one. I should really buy some more. Its a no brainer if you can hold for the medium term.

Corporate
26-10-2011, 05:59 PM
Well I completed my holding of AJM today with a decent purchase. Holding tightly.

Anna Naum
26-10-2011, 07:39 PM
Well I completed my holding of AJM today with a decent purchase. Holding tightly.

Welcome to the club

Corporate
26-10-2011, 09:09 PM
Welcome to the club

Been in for a while ;) just topped up my holding.

Anna Naum
26-10-2011, 09:16 PM
Been in for a while ;) just topped up my holding.

Well nice to know I am in the company of such advanced members and guru's.

Anna Naum
26-10-2011, 09:18 PM
So is it time to start a AJM thread?

drillfix
26-10-2011, 09:41 PM
So is it time to start a AJM thread?

Sounds like a good idea to me there Anna.

Was slightly confused :confused: as I came here to read about why the continuous Flat Liner share price of WPG only to discover there is more chit chat about AJM.

Corporate
27-10-2011, 07:26 AM
Sounds like a good idea to me there Anna.

Was slightly confused :confused: as I came here to read about why the continuous Flat Liner share price of WPG only to discover there is more chit chat about AJM.

DF, I will have to take responsibility for that sorry. I sold out of WPG, moved into AJM and started posting on the WPG thread!

drillfix
27-10-2011, 11:37 AM
DF, I will have to take responsibility for that sorry. I sold out of WPG, moved into AJM and started posting on the WPG thread!

No need to be sorry Corp, its all good :)

soulman
12-01-2012, 11:25 AM
Volume and action in WPG in the last 2 days got me into it. Cheapest price paid 7.8 cents and some more at 8 cents yesterday. Seems to be trading at EV of about $4 mil. Cash on hand purportedly said by the company of about $15 mil. Coal asset negligible. Still good for a specs trade.

soulman
12-01-2012, 05:12 PM
Sellers cap the SP at 8 cents. Volume does churn through but sellers dictate WPG in the meantime.

drillfix
12-01-2012, 05:43 PM
Hmmm, not really my cuppa souly.

IMO, too flat for far too long, its gotta break one way or another sooner or later though, so good luck with that, but you always seem to do well and time stuff well, so you wont need luck mate :)

Corporate
04-06-2016, 10:20 AM
Is anyone following Wpg? I haven't for a while but see they have started production at Challenger

JBmurc
05-06-2016, 06:11 PM
No never heard of them .....but there is many miners on the ASX hard to keep an eye on even half of them

macduffy
06-06-2016, 07:54 AM
Is anyone following Wpg? I haven't for a while but see they have started production at Challenger

I sold my WPG back in 2011 when the iron ore assets were sold to the then Onesteel. Nice profit, but havn't looked at them since. (Frightened off by the metals bust, probably.)

Traderwannabe
12-01-2017, 02:10 PM
Does anyone have any opinions on this share at the moment? It has moved nicely over the last couple of days. Could it move to and maybe beyond 8cents??

denpal
12-01-2017, 07:50 PM
Does anyone have any opinions on this share at the moment? It has moved nicely over the last couple of days. Could it move to and maybe beyond 8cents??

Yes I hold these and do so because of the proven management who have skin in the game and the nature of the assets. The share price has been soft over the last month due to options conversion and arbitrage between the options and the heads on conversion.

For the current market cap, this is an operating profitable gold mine around 70k oz pa from memory (50k oz pa underground and 20k pa open pit). The latter just being brought into production now.

denpal
13-01-2017, 07:20 PM
Chart shows a strong rebound from the low.

Traderwannabe
13-01-2017, 08:25 PM
Yes I hold these and do so because of the proven management who have skin in the game and the nature of the assets. The share price has been soft over the last month due to options conversion and arbitrage between the options and the heads on conversion.

For the current market cap, this is an operating profitable gold mine around 70k oz pa from memory (50k oz pa underground and 20k pa open pit). The latter just being brought into production now.
Thanks for your input. I bought a small parcel at .049 and have watched with excitement over the last couple of days. Hopefully it continues!

denpal
14-01-2017, 05:21 PM
This last week was WPG's biggest volume week for the last five years.

I'm anticipating that the management team gets the mine humming and the AISC pared to allow a good margin even at $A1600 gold price, although a higher share price may eventuate if the $A weakens and the gold price rises somewhat over this year. This is one of my 2017 competition picks and the one I think could go up more being leveraged to the price of gold more than the others. But, in this sector risk is never absent, so much can go wrong on so many levels. The immediate goal is to show stabilized production at an acceptable AISC.

On their website there is a Dec 2016 research note from Patersons that has a 13c target.

denpal
25-01-2017, 09:44 AM
With some good news and thus increasing confidence in their mining plan plus digesting the options conversion, the share price has recovered nicely to 8.3c almost doubling in a month. Still cheap for what it has and what the annual gold production may be if they can tweak the mill to process 800ktpa. Have a read of the last couple of announcements.

JBmurc
31-03-2017, 07:01 PM
5.5c mmmm might well gave to have another look getting cheaper maybe Aisc still to high for qtr

JBmurc
14-06-2017, 11:50 AM
Might be time to BUY with large Cap raising sentiment has seen the SP crushed of late and with CR to come might see the SP track the GOLD price till the funds are used to increase production... a BUY and HOLD ....good cash backing with good upside to AUD Gold ....energy costs not going anywhere ...but still a good amount of risk in the mining / production grades