The Investment Doctor
Long/short equity, value, debt, base metals

Western Copper And Gold - The Casino Project Could Be Interesting Despite The High Capex

Executive summary:

  • The Casino Project is one of the largest undeveloped Copper-Gold assets in a safe jurisdiction.
  • Western Copper will produce copper at an estimated all-in cost of $0.25/lb, using the current gold and molybdenum prices.
  • The main hurdle is the initial capex, but I think the project is attractive enough to secure a partner with deep pockets.
  • Using a conservative valuation based on a copper price of $2.50/lb and a 400% share dilution, the fair value per share is $2.80 (after-tax, 8% discount rate).



In this article I'll have a closer look at Western Copper and Gold (NYSEMKT:WRN) which aims to develop its gigantic Casino copper-gold project in Canada's Yukon province. I'll start...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details