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With a hugely untapped high-grade gold resource and compelling potential base metal discoveries, Warriedar Resources (ASX:WA8) is poised for a significant upside in its current market valuation, according to a new report from analyst firm East Coast Research.
“Applying a peer-based EV/resource multiple approach, we derive the valuation of AU$0.09 in a base case scenario and AU$0.11 per share in a bull case scenario,” analyst Behzad Golmohammadi wrote in the report.
Warriedar Resources is an advanced gold and copper exploration company with an existing resource base of about 2 million ounces of gold between its projects in Western Australia (Golden Range and Fields Find) and Nevada, USA (Big Springs). The analyst report cites Warriedar’s successful exploration to date of Golden Range and Fields Find with highly encouraging results suggesting a potential for high-grade gold discoveries and a porphyry system hosting polymetallic mineralisation, including gold, copper, molybdenum and silver.
“Successful resource expansion from the upcoming aggressive drilling campaigns, enhanced by
positive metallurgy and new discovery potential could drive a substantial rerating, in our view,” Golmohammadi wrote.
The report also cited the current positive gold outlook that is expected to drive gold prices higher, adding to the upside potential of Warriedar Resources.
Report highlights include:
- Warriedar Resources holds a largely underexplored portfolio of high-grade gold assets, with significant base metals discovery potential, in tier 1 jurisdictions surrounded by existing gold deposits and producing mines.
- The company’s diverse exploration programmes in 2023 yielded encouraging results, highlighting the substantial inherent potential in Warriedar’s key projects.
- A positive gold outlook expected to drive gold prices higher
- Using a sum-of-the-parts-driven asset base comparable valuation methodology and a conservative resource estimates assumptions, East Coast Research’s valuation of Warriedar is at AU$0.09 per share in the base-case scenario and AU$0.11 per share in the bull-case scenario, representing a price/NAV of 0.41x, which offers ~150 percent upside probability for potential investors.
For the full analyst report, click here.
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