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West Wits Mining (ASX:WWI) - Gold Producer Doubles NPV to $500M with 81% IRR in Updated DFS
Manage episode 496995274 series 2505288
Interview with Michael Quinert, Executive Chairman of West Wits Mining
Our previous interview: https://www.cruxinvestor.com/posts/west-wits-mining-wwi-tolling-agreement-brings-production-date-closer-2663
Recording date: 23rd July 2025
West Wits Mining Limited (ASX:WWI) has released an updated Definitive Feasibility Study for its Qala Shallows gold project in South Africa, revealing dramatically improved economics that position the company as an attractive near-term gold producer. The study shows post-tax Net Present Value increasing from $246 million to $500 million USD, while the internal rate of return reaches 81%.
Executive Chairman Michael Quinert attributes these improvements to higher gold price assumptions, rising from $1,850 per ounce to $2,850 per ounce based on Bloomberg consensus, alongside operational optimizations including lowering the cutoff grade from 2 grams per tonne to 1.31 grams per tonne. These changes extend the mine life from 9 to 12 years at steady-state production of 70,000 ounces annually.
The company has secured $50 million USD in binding bank funding from ABSA Bank and the Industrial Development Corporation, with definitive legal documents signed. This funding structure significantly reduces dilution risk for shareholders while validating the project through comprehensive third-party due diligence. The debt facility includes standard commercial terms and hedging requirements structured through put options rather than full hedging arrangements.
Production timeline has accelerated substantially, with ore extraction possible within eight weeks of recommencing operations. The project benefits from previous development work establishing infrastructure to the second level on ore, while Modi Mining has been engaged for contract mining services based on their extensive platinum field experience.
West Wits Mining has secured a four-year evergreen toll treatment agreement with Sibanye-Stillwater, providing processing certainty while maintaining flexibility through multiple alternative options in the region. The company holds over 5 million ounces of resources within a compact footprint, with expansion potential to 200,000 ounces annually through "Project 200."
Trading at approximately $75 million market capitalization, West Wits Mining presents compelling re-rating potential as it transitions from developer to producer, supported by improving South African infrastructure and the favorable gold price environment.
View West Wits Mining's company profile: https://www.cruxinvestor.com/companies/west-wits-mining
Sign up for Crux Investor: https://cruxinvestor.com
2128 episodes
Manage episode 496995274 series 2505288
Interview with Michael Quinert, Executive Chairman of West Wits Mining
Our previous interview: https://www.cruxinvestor.com/posts/west-wits-mining-wwi-tolling-agreement-brings-production-date-closer-2663
Recording date: 23rd July 2025
West Wits Mining Limited (ASX:WWI) has released an updated Definitive Feasibility Study for its Qala Shallows gold project in South Africa, revealing dramatically improved economics that position the company as an attractive near-term gold producer. The study shows post-tax Net Present Value increasing from $246 million to $500 million USD, while the internal rate of return reaches 81%.
Executive Chairman Michael Quinert attributes these improvements to higher gold price assumptions, rising from $1,850 per ounce to $2,850 per ounce based on Bloomberg consensus, alongside operational optimizations including lowering the cutoff grade from 2 grams per tonne to 1.31 grams per tonne. These changes extend the mine life from 9 to 12 years at steady-state production of 70,000 ounces annually.
The company has secured $50 million USD in binding bank funding from ABSA Bank and the Industrial Development Corporation, with definitive legal documents signed. This funding structure significantly reduces dilution risk for shareholders while validating the project through comprehensive third-party due diligence. The debt facility includes standard commercial terms and hedging requirements structured through put options rather than full hedging arrangements.
Production timeline has accelerated substantially, with ore extraction possible within eight weeks of recommencing operations. The project benefits from previous development work establishing infrastructure to the second level on ore, while Modi Mining has been engaged for contract mining services based on their extensive platinum field experience.
West Wits Mining has secured a four-year evergreen toll treatment agreement with Sibanye-Stillwater, providing processing certainty while maintaining flexibility through multiple alternative options in the region. The company holds over 5 million ounces of resources within a compact footprint, with expansion potential to 200,000 ounces annually through "Project 200."
Trading at approximately $75 million market capitalization, West Wits Mining presents compelling re-rating potential as it transitions from developer to producer, supported by improving South African infrastructure and the favorable gold price environment.
View West Wits Mining's company profile: https://www.cruxinvestor.com/companies/west-wits-mining
Sign up for Crux Investor: https://cruxinvestor.com
2128 episodes
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