WRM trading well below valuation say DJ Carmichael
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Stock broking firm DJ Carmichael have identified WhiteRock Minerals’ (ASX:WRM) Red Mountain Polymetallic Project in Alaska as being an advanced project with ‘plenty of upside’.
The Red Mountain Polymetallic Project in Alaska, is an advanced, zinc-dominated VMS (volcanogenic massive sulphide) exploration project located within 100 kilometres of Alaska’s second largest city, Fairbanks.
In an updated research note on the 2018 exploration strategy planned for WRM’s globally significant Red Mountain Zinc-Silver VMS Project, analysts from DJ Carmichael determined that there’s potential for WRM to ‘increase resources and possibly to establish a new, 100% owned, VMS camp just 100 kilometres south of Fairbanks’.
The broker also considered the company’s advanced, epithermal Mt Carrington Gold-Silver Project in northern NSW.
DJ Carmichael labelled WRM a ‘Speculative Buy’. It assigned a value to WRM’s Red Mountain Project of $52 million, or 6 cents per share. Add to that $17.3 million ($0.019) for the Mt Carrington Project, and the broker values the combined Red Mountain and Mount Carrington Projects at 8 cents per share. For the coming 12 months, DJ Carmichael is targeting a share price of 4 cents.
This is well up from the current share price of 1.2 cents, suggesting there could be upside potential for WRM shareholders.
The future performance of this product is not and should not be taken as an indication of current or past performance. Caution should be exercised in assessing future claims of performance, as these are based on assumptions. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.
The price target is based on a successful exploration programme and anticipated high associated newsflow from the Red Mountain Polymetallic Project over the course of 2018.
WRM Managing Director and CEO, Matt Gill said “The company is very excited about the potential for its globally significant high-grade Zinc VMS Project at Red Mountain and the progress it has made with the Pre-Feasibility Study at the Mount Carrington Gold – Silver Project.”
Late last year, WRM announced its exploration strategy for Red Mountain with the planning for this now well underway. At around the same time the company also released the positive findings from its Mt Carrington Pre-Feasibility Study (PFS).
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
