Q: Hi 5i Team;
It is my understanding that WRLG.CA recently began production at their mine(s)? Would you please give your opinion about West Red Lake Gold's current situation, as well as future prospects, regarding their Gold mine(s)?
It is my understanding that WRLG.CA recently began production at their mine(s)? Would you please give your opinion about West Red Lake Gold's current situation, as well as future prospects, regarding their Gold mine(s)?
5i Research Answer:
The stock is having a nice run along with the sector, though valuation remains low at 6X earnings. The Madsen mine was acquired in 2023 and re-started in May of this year. So far, so good. It is operating well and the company has seen some new high-grade drilling. There is potential over the years to ramp production to 100,000+ oz. There are always risks to a start up mine (even a re-start) but if things go well we would expect the stock to ger re-rated and de-risked as a new producer. Insiders own 9% and have been net buyers this year. EPS is expected to go from 15c this year to 36c this year. There are the usual associated small cap and sector risks here, but otherwise it looks quite good.