Wolf Minerals - WLFE Stream Log

There is another major reserve upgrade to come if they are successful in getting permission for the Southern Extension, that is likely to add another 30-40% to yesterdays uprated reserve. So far the uprated reserve has not been factored into any NPV calclations, but I wold anticpate a 10-15% uprate in the NPV following both the news of the uprated reserve and 7 day working. Further exploratory drilling is also going to significantly increase the reserve, as there is a lot currently in the inferred category that cannot be included in the JORC compliant statement.

Well thats a good start to the day! 30% increase in reserves (That was far more than I envisaged from pit deepening - a extra 65m depth!!! - That is going to be one massive hole in the ground). That also means that the reserve upgrade if we get permission to extend the width is going to be much larger - altogether the reserve could be doubled from what it was a week ago! With no extra CAPEX! I reckon 40pps by October.

I think there is more upside than that, we have a resource upgrade as a result of pit wall steepening due, that should at 10%, we also have another resorce upgrade due later this year with an increase in the mining area, that should add another 15%. If the seven day crusher operation gets the green light, that should add another 5%. That is all in additon to the rise than can be expected as we close in on production. I'm thinking a 50% rise on the current position by the end of the year to around 30pps.

The exchange doesn't say whether a trade is a buy or a sell, Its a computer algorithm that takes a stab at figuring it out based on the price.

While the Tungsten price obviously has an impact on revenues, what needs to be factored in, that most people seem to fail to take into account is fuel costs. Energy is normally the largest cost element of any mining operation, especially Open Pit operations where the fleet consume a huge amount of Diesel, since the DFS was published in 2011 (Red Diesel was costing 83p/litre then), the cost of red diesel has reduced massively (Currently 52p/litre) and looks set to fall lower. That could result in a 20% reduction in Operationl Expenditure!

So we're looking at a 20% ore reserve increase WITHOUT the Southern extension (which I can't see not having permission granted for), with no increase in Capex and what should bring a lower strip ratio. That has to be worth 3p on the share price surely?

Its not so much production starting in April as start of wet commissioning - basically running the mill up and optimising for the run of mine head grade, this process will output an amount of concentrate but not the production volume once the plant is fully commissioned. I would be amazed if the open pit is developed enough in April to feed the constant ore supply that the production mill will require.

I will keep asking ... has anyone been able to replicate the original npv numbers? If they are right ... isn't this stock over valued?

Has anyone performed any analysis on the npv for Wolf Minerals ... I am having trouble replicating their numbers.

If Wolf Minerals has a NPV between $118M to $182M (US) and there are 808M shares should the top end of the price be between $00.14 and $00.22 (US)