Research Report on Woulfe Mining Corporation (TSX-V: WOF) by CaesarsReport.com
CaesarsReport.com has released a research report on Woulfe Mining Corporation (TSX-V: WOF). Tungsten markets are tightening as China has restricted exports and imposed taxes. APT demand is increasing and the supply side has barriers to development. One of the reasons the stock is dropping might be that stocks bought earlier in the private placement are being dropped in the market. Sign up at www.caesarsreport.com to receive the newsletter and the full Research Report, Free of charge.
Brussels, Belgium, April 24, 2010 --(PR.com)-- Please Note: All news in this release is summarized. To read the full report, go to www.caesarsreport.com, and sign up Free to receive the full report.
The Company’s current projects include the Sangdong tungsten-molybdenum mine, historically, one of the largest tungsten mines in the world; the Muguk gold-silver mine, formerly South Korea’s largest gold producing mine, as well as a number of other properties with significant known mineralization and excellent regional potential. Last month, they company published the economics of their Tungsten project in South-Korea.
IRR of 26.4% (base case scenario)
CAPEX of 290M
NPV of 462M
Warning: the base case scenario anticipates APT-prices of 250 USD/ metric tonne, where the prices now are 220 USD/tonne. So the base case scenario already is anticipating higher Tungsten-prices.
Located south-east of Seoul, the Sangdong tungsten-molybdenum mine was one of the world’s largest producing mines between 1947 and 1992. The mine closed prematurely in 1992 due to low metal prices. The Sangdong Mine had historical production rates of 600,000 tpa mainly from the six-metre thick Main Vein. Drilling by KORES during 1980-1987 discovered a deep molybdenum deposit below the remaining tungsten skarn resources.
Both tungsten and molybdenum prices have increased significantly since the mine’s closure. Price increases are based on favourable supply and demand balances, making this a highly attractive deposit for re-evaluation.
Tungsten markets are tightening as China has restricted exports and imposed taxes. APT demand is increasing and the supply side has barriers to development. Sangdong is well positioned to be the worlds next large tungsten mine as it has infrastructure and underground development in place.
Sangdong is well placed to be commissioned in 2013 which will coincide with the high tungsten prices as market friction and barriers that other projects have towards development.
But why is the stock dropping? Simple. Back in December 2009, the company issued 82M shares as part of a private placement. The hold period ended last Sunday, so when the market opened on Monday, the buyers of the Private Placement started to drop their shares on the open market. The private placement was done at C$0.08 so there still is downside potential. Within the next few months new capital will have to be raised.
To read the full report, go to www.caesarsreport.com and sign up Free of charge.
Disclaimer: For the full disclaimer, visit http://www.caesarsreport.com/discl
The CaesarsReport.com employees, Caesars Report ("We" “They” “Caesars Report”) are not Registered as an Investment Advisor in any jurisdiction whatsoever. CaesarsReport.com employees are not analysts and in no way making any projections or target prices. Neither the information presented nor any statement or expression of opinion, or any other matter herein, directly or indirectly constitutes a representation by the publisher nor a solicitation of the purchase or sale of any securities. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. The owner, publisher, editor and their associates are not responsible for errors and omissions. They may from time to time have a position in the securities mentioned herein and may increase or decrease. Please always do your own research. All information was provided by the company, their presentations and website. We are not responsible for errors made herein. Please consult a broker before purchasing or selling any securities mentioned herein. To view the full disclaimer, go to www.caesarsreport.com/discl
Disclosure: The author holds a long position in Woulfe Mining Corporation (TSX-V: WOF). This means that the author is biased. Please, always do your own research.
Contact: www.caesarsreport.com/contact e-mail: info(at)caesarsreport(d.t)com www: http://www.caesarsreport.com
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The Company’s current projects include the Sangdong tungsten-molybdenum mine, historically, one of the largest tungsten mines in the world; the Muguk gold-silver mine, formerly South Korea’s largest gold producing mine, as well as a number of other properties with significant known mineralization and excellent regional potential. Last month, they company published the economics of their Tungsten project in South-Korea.
IRR of 26.4% (base case scenario)
CAPEX of 290M
NPV of 462M
Warning: the base case scenario anticipates APT-prices of 250 USD/ metric tonne, where the prices now are 220 USD/tonne. So the base case scenario already is anticipating higher Tungsten-prices.
Located south-east of Seoul, the Sangdong tungsten-molybdenum mine was one of the world’s largest producing mines between 1947 and 1992. The mine closed prematurely in 1992 due to low metal prices. The Sangdong Mine had historical production rates of 600,000 tpa mainly from the six-metre thick Main Vein. Drilling by KORES during 1980-1987 discovered a deep molybdenum deposit below the remaining tungsten skarn resources.
Both tungsten and molybdenum prices have increased significantly since the mine’s closure. Price increases are based on favourable supply and demand balances, making this a highly attractive deposit for re-evaluation.
Tungsten markets are tightening as China has restricted exports and imposed taxes. APT demand is increasing and the supply side has barriers to development. Sangdong is well positioned to be the worlds next large tungsten mine as it has infrastructure and underground development in place.
Sangdong is well placed to be commissioned in 2013 which will coincide with the high tungsten prices as market friction and barriers that other projects have towards development.
But why is the stock dropping? Simple. Back in December 2009, the company issued 82M shares as part of a private placement. The hold period ended last Sunday, so when the market opened on Monday, the buyers of the Private Placement started to drop their shares on the open market. The private placement was done at C$0.08 so there still is downside potential. Within the next few months new capital will have to be raised.
To read the full report, go to www.caesarsreport.com and sign up Free of charge.
Disclaimer: For the full disclaimer, visit http://www.caesarsreport.com/discl
The CaesarsReport.com employees, Caesars Report ("We" “They” “Caesars Report”) are not Registered as an Investment Advisor in any jurisdiction whatsoever. CaesarsReport.com employees are not analysts and in no way making any projections or target prices. Neither the information presented nor any statement or expression of opinion, or any other matter herein, directly or indirectly constitutes a representation by the publisher nor a solicitation of the purchase or sale of any securities. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. The owner, publisher, editor and their associates are not responsible for errors and omissions. They may from time to time have a position in the securities mentioned herein and may increase or decrease. Please always do your own research. All information was provided by the company, their presentations and website. We are not responsible for errors made herein. Please consult a broker before purchasing or selling any securities mentioned herein. To view the full disclaimer, go to www.caesarsreport.com/discl
Disclosure: The author holds a long position in Woulfe Mining Corporation (TSX-V: WOF). This means that the author is biased. Please, always do your own research.
Contact: www.caesarsreport.com/contact e-mail: info(at)caesarsreport(d.t)com www: http://www.caesarsreport.com
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