West African Minerals - Dattels be the day

Tuesday, Apr 30 2013 by
2

I attended the Master Investor Event in Islington on Saturday - and thoroughly enjoyed it.

One of the presentations was by Jim Mellon (who famously made a fortune out of Uramin) who enthused for England about a wide range of subjects.

He mentioned West African Minerals Corp (WAFM) as a company in which he has a significant interest. He also mentioned that his long standing business partner/associate, Steven Dattels is the chairman of WAFM and was attending the event on the WAFM stand where he was available for discussion.

Having profited greatly from URU, which was so brilliantly researched and analysed here by Marben, and having heard wonderful things about Mr Dattels' genius where mining investment is concerned, I subsequently headed for the WAFM stand to investigate further.

As luck would have it I did not manage to see or speak with Mr D himself – he was away from the stand each time I visited. But I did have a long and interesting conversation with the MD, the colourfully named Anton Mauve. (no purple prose here)

Headline – WAFM is focussed on iron mining in Cameroun. Has licenses on a large area of extremely high grade mineralisation which is close to the coast and to the export infrastructure which is currently being developed. Is in the process of exploration & appraisal. Aims to define maiden resources in 2013. Has much work still to do but looks v promising. Key issue is that at 60% Fe, the grade of ore is so high that it can be shipped without any local pre-processing being needed. (this is termed Direct Shipping Ore or DSO)

market cap is about £100 million

website is here:- www.westafricanminerals.com

Master Investor interview with MD is here:- www.brrmedia.com/event/111517/anton-mauve-managing-director?popup=true&wl=670

recent analyst presentation is here:-
www.westafricanminerals.com/sites/default/files/Analysts%20presentation%20-%2019%20april%20wafm%20presentation.pdf

lots of other stuff on website

S Dattels is CEO and Exec Co-Chair and owns 9.4%

J Mellon is non-exec Co-Chair and owns 6.3%

Management and insiders own a total of 55%

I have not had time since Saturday, to give serious thought to valuation or to consider the investment case. And since I’m going into hospital tomorrow to get my shoulder fixed at last, I won’t get time for a while. However there was an RNS today which made me wonder if there was a potential window of opportunity in the short term

RNS here:- www.investegate.co.uk/west-african-mineral--wafm-/rns/director-dealings-and-board-change/201304300700455364D/

What the RNS says is that one of the founders has sold all of his shares at a price of 29.8p. The seller is an Italian investor/trader who has made himself very rich very quickly – he’s still under 30. It’s a big sale - about 13% of the co at a relatively low price. In the past year the price has risen from about 25p to 80p and back to around 50p before recently falling to 30p, presumably in reaction to this impending sale. I wonder if today's price of 35p represents a decent entry opportunity. It certainly looks attractive relative to the price throughout the past 12 months and the progress made during that time.

I need to look deeper and more thoughtfully and will do so when I’m back in working order, hopefully next week.


Filed Under: Resources, Stock Picks,

Disclaimer:  

The author may hold shares in this company. All opinions are his own. You should check any statements that appear factual and seek independent professional advice before making any investment decision.


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West African Minerals Corporation (WAFM), formerly Emerging Metals Limited, focuses investment opportunities across types of natural resources projects. WAFM’s subsidiaries include Ferrum Resources Limited (Ferrum), CMC Guernsey Limited (CMC), Compagnie Miniere du Cameroun (CMC Cameroon), Ferrous Africa Limited (Ferrous Africa), Tanziron Resources Limited, Ingwe Investments Limited, Ferrous Benin Limited, Ferrum Resources Guinee S.A. (Ferrum Guinee) and Ferrum Mauritania Limited. Ferrous Africa holds a 75% interest in five exploration licences for iron ore and other minerals in Sierra Leone. CMC Cameroon holds six iron ore exploration licenses in Cameroon. Ferrum Guinee holds exploration applications in Guinea. On March 15, 2012, Ferrum acquired the remaining 34.51% interest in CMC. On January 23, 2012, WAFM disposed Ferrum Centrafrique S.A. In July 2012, it acquired 5% minority interest in CMC Cameroon, making CMC an indirect wholly owned subsidiary of WAFM. more »

Share Price (AIM)
6.13p
Change
0.0  0.0%
P/E (fwd)
n/a
Yield (fwd)
n/a
Mkt Cap (£m)
22.8



  Is West African Minerals fundamentally strong or weak? Find out More »


2 Posts on this Thread show/hide all

tournesol 20th May '13 1 of 2
2

So, today the share price is 40p - that's 33% in the 3 weeks since I started this thread.

Unfortunately I have not yet bought in and now have to overcome the psychological barrier of a price quite a bit steeper than when I first started looking. One the one hand it looks as if the market agrees with my sense of this being an attractive opportunity. On the other.......

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darlocst 20th May '13 2 of 2

Based on resources, location & cash position its overvalued versus other greenfield African iron ore plays. SDL listed over on ASX, Afferro Mining Inc (LON:AFF) & Zanaga Iron Ore Co (LON:ZIOC). The latter two have EVs approaching 0 with secure funding & good sized proven resources. SDL has a massive (but stranded) resource already proven up with mining permits in place, share price crushed recently due to failed Chinese takeover. I haven't looked in detail but if I remember correctly recent West African Minerals (LON:WAFM) drilling results have been disappointing and talk of DSO over hyped.

This sector has to be just about the least loved in the market right now, rightly so for many reasons but the valuations have already priced in the risks imo. I'd be looking at the 3 shares above ahead of West African Minerals (LON:WAFM) personally.

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