Q: Good afternoon,
WM is at .085 cents and a market cap of $86 million. It has not responded at all with the gold rally. It has a positive PEA that appears to have much more value then the market cap. What is your opinion at this time.... Thanks, George
WM is at .085 cents and a market cap of $86 million. It has not responded at all with the gold rally. It has a positive PEA that appears to have much more value then the market cap. What is your opinion at this time.... Thanks, George
5i Research Answer:
It is very hard to attract new investors to an $86M company whose shares are trading at 8 cents. Shares are also down 95% from 2020's peak level. It has some cash, but has never had positive cash flow, so might need more capital. Its new CEO has only been in place six months as well. The PEA was positive, but raising capital for the project may still be a challenge. We would consider it too small and too risky for a strong endorsement.