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WRM trading well below valuation say DJ Carmichael


Published 19-FEB-2018 11:30 A.M.


2 minute read

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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).

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