Hello Vaughn,
Not to be picky, but some other factors that are very important:
1) Shares outstanding for WSP are about 49.6 million fully diluted
2) Most projected production rates are for 1,500 - 3,000 tonnes per day
3) Tonnage could be much higher if other drilling proves out
4) Time to start of production is crucial. Mgmt suggest 2001, but with a big 40,000 tonne underground sample for next winter, this may suggest that big money would only committ after these results are known, making 2002 an aggressive start date.
5) the cost of the mine will either dilute the stock or eat the profits for a few years because of debt
6) the analysts and portfolio mgrs will only consider the net present value of future cash flow, which is very dependent on time, discount rate and costs to production.
I think the WSP guys have done a fantastic job, but the basic fact comes back that they have a fissure mine in a very unfortunate location, and I know what you think about that sort of thing. ;-)
Regards,
Confluence |
