This is due within the current quarter. Will anyone speculate on what this is likely to be like and what the effect will be on earnings going forward. I guess the survey will be fairly positive as there must have been confidence to commission it. I've been here for some time and now feel the resourse market is on the up and that WAFM and its shareholders will both benefit we have the cash to progress the business or even make an acquisition.
Elviron1, picking up on your post a few weeks ago WAFM said they expected results during the second quarter of the year and we now approach that period. With the price of Iron Ore much higher any upbeat report could have a significant and positive impact on the sp. The cash they hold means that any funding is not a concern so the coming weeks are set to be interesting for all investors perhaps even a predator.
Not sure I understand the weakness in the sp. The copper and iron ore market is showing an increase in prices so WAFM should benefit. Also we have a fair bit of cash for acquisitions.Still cheap under 5p IMO
The whole mining sector is showing to have a lot of interest at the moment as the cycle moves back into its favour. And I feel WAFM which is highly operationally geared will benefit massively and may well be looking for an acquisition with its cash holdings.
Iron Ore and Copper on the way up and with WAFM being highly operationally geared revenues will begin to wash over costs and make an impressive hit on the bottom line. Also they seem keen to bolt on acquisitions with the cash they have in the Bank. Its all about timing but with the sector now more on the radar than for some time WAFM could be a good place to be - once any positive news breaks the current 3p-4p will be left well behind.
1) Really low cash burn - £130k in 6 months! That leaves an extremely healthy £3.44 million in the bank.
Again, the management aren't off blowing it on any old rubbish project that comes their way - nice to see.
2) More exciting is that there is the first sign of movement on the Sanaga front, in the form of a scoping study on the production of iron ore pellets. The key thing here is that they would probably not have bothered doing this study if iron ore was still sitting at $40-50/tonne. My guess is that the iron ore price is getting pretty close to interesting levels again and they want to have an independent study done to work out exactly what iron ore price they need to start making some serious bucks from this project.
I take the holding off from supplying the local market route as a third positive, since it's clear to me that they think if they wait a bit longer they can get the real prize, which is exporting it.
A dodo that turns out to be a phoenix, perhaps? I hope so.
Been in these from the start when they were Emerging Metals. I had written WAFM down as a total loss, back of drawer, forgotten about, but it seems to have at least some life in it still. May top up but still wary. Is the rise on the back of market factors or WAFM specifics?
Share was close to cheapest it's ever been earlier this week at around 2p. It hit an all-time low, and rebounded quickly, at the start of November, at which point, taking account of the spread, you'd have been lucky to pick some up for 1.5p.
Upside potential PLENTY from here. Downside risk not so much - cashed up to the tune of £3.6 million (yes that's pounds not dollars) and with a prudent management. Plenty enough to weather the storm. And I believe that by the time all the punters realize that the storm has cleared these bargain levels will be history and the lucky ones will be jumping on the train at station 10p.
A taste of that action today - was up 100% in a matter of 30 minutes. Imagine the movement on an announcement that they are going to move this thing into production...
West African Minerals (LON:WAFM) has undertaken a major retrenchment of its operations in Cameroon and Sierra Leone to conserve cash.
The iron ore explorer has slashed its planned operational expenditure in the current year, with the remaining projects to be outsourced to a company run by existing management.
The companys main targets at Binga, Djadom and Sanaga, and the exploration targets identified at Lélé and Djadom North are all being retained but the interests elsewhere, including in Sierra Leone, are being handed back to save money.
As a result, technical and operating expenses will fall to US$350,000 from US$2.92mln while the land area WAFM has rights over in Cameroon reduces to 332 sq km from 4,200 sq km.
Management of the ongoing projects will now be handled by Plinian Capital at an annual cost of US$160,000.
Plinians fees will include the costs of president Brad Mills, managing director Anton Mauve and the exploration director. Mills and Mauve are both shareholders in Plinian.
Mills said: "The company is very pleased with the technical work it completed in 2014, and in particular the Maiden Inferred Mineral Resource Estimate for its Sanaga project which was completed on time and on budget.
The directors are however mindful of current market conditions, and the importance at this time of preserving cash.
Our current cash position is approximately US$7mln and the 2015 Budget seeks to maintain this cash position by reducing expenses at the operational and corporate level to the absolute minimum.
results from the metallurgical work should be ready in 6-8 weeks or possibly even earlier, after which it will make a decision on which deposit it start drilling, though it seems pretty clear he expects Sanaga to be the priority going forward.
Our current funding will allow us to develop either Binga or potentially Sanaga towards a 60-100mt mineral resource estimate (MRE) in December and a preliminary economic assessment (PEA) in the first quarter of 2015."
West African Minerals Corporation (AIM: WAFM) is pleased to provide an update of exploration activities at its iron ore licenses in Cameroon and Sierra Leone. Detailed field follow-up comprising ground-truthing of previously identified magnetite geophysical targets at Sanaga, Binga, Lele and North Djadom in Cameroon, and extensive trenching of a hematite schist unit at Madina (EL06/11) in Sierra Leone, have identified two significant iron mineralisation zones on the Sanaga and Madina leases. In addition, surface iron mineralisation has been mapped on two significant geophysical anomalies on Lele and North Djadom. (See Figure 1 for Cameroon leases on linked PDF)
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