White Rock Minerals (WRM.AX): New research report ascribes A$0.87 as fair value to White Rock Minerals shares

“We believe Red Mountain’s resource is one of the highest-grade silver-zinc VMS deposits in the world (9.1 Mt at 13.2% ZnEq or 609 g/t AqEq). We believe WRM will likely be able to expand its existing resource-base, and delineate a gold-rich maiden resource in 2022/2023.

“Woods Point has historically produced 880 Koz gold at very high-grades (26.5 g/t). We believe the existing mining infrastructure, and an 80,000 tonne per annum processing plant, are the project’s major advantages, as WRM will be able to quickly advance the project back into production after delineating a resource.

“Thomson Resources (ASX: TMZ / MCAP of $41M) is earning up to a 70% interest in Mt Carrington. WRM is carried free through to a Definitive Feasibility Study (DFS) and an Environment Impact Statement (EIS), implying that WRM has no near-term capital commitments. A 2020 PFS indicated a Before Tax-NPV8% of A$94M, and a high IRR of 82%. WRM’s 30% interest implies a BT-NPV8% of $28M. As WRM’s Enterprise Value (EV) is just $29M, we believe the market is assigning zero value to Red Mountain and Woods Point.

“We believe inflation and slow rate hikes will provide near-term support to gold prices. Upcoming catalysts include exploration drilling at both Woods Point and Red Mountain and the completion of a DFS at Mt. Carrington”.