Gold and copper are my favorite metals — which leads me to a new recommendation which has a lot of both. Western Copper & Gold (Toronto: WRN) (NYSE: WRN) is developing the world-class Casino copper-gold project in the Yukon Territory, explains resources expert Gerardo Del Real, editor of Junior Mining Monthly.
The company boasts a market-cap of C$171/US$123 million and C$183/132 million fully-diluted. Western Copper & Gold has approximately C$7.3 million in cash and zero debt. Managment and the Board own approximately 12% with private high net worth investors owning approximately 48%.
The 100%-owned Casino project boasts 8.9 million ounces of gold in reserves and 9 million ounces in the inferred category, along with 4.5 billion pounds of copper in reserves and 5.4 billion pounds in the inferred category.
The share price — despite the recent run up — trades at a substantial discount to the value the project presents. In addition to the scale of the existing project, there is significant exploration potential that could add to the list of ways that we make money on Western Copper & Gold.
Let me be clear, I’m not buying Western Copper & Gold for the next 30% move. I’m buying it because one day it will be bought out for many multiples of what we’re paying today.
The project is in an emerging district that boasts at least over 25 million ounces of gold and billions of pounds of copper, and one that still has million of ounces and billions of pounds left to be discovered.
The company has the asset, technical expertise and the type of credibility with the community that will help any potential suitor with the ongoing permitting process.
Near-term catalysts include the pending resource update, drill results and higher copper and gold prices. In the mid-term the company is expected to start an updated Feasibility Study in 2021. A study that depending on drilling this year could add several options to an already robust menu of options.
For all those reasons Western Copper & Gold is a buy up to C$1.75/US$1.36. Place a limit order, good until filled. The company should be considered a “core” company in the portfolio.
