Western Copper & Gold (WRN) - Too Big to Fail? It's Complex.
Matthew Gordon, Ptolemy Capital
2 Weeks ago
Interview with Paul West-Sells, President & CEO of Western Copper & Gold Corp. (NYSE, TSX: WRN).
Western Copper & Gold Corporation is a copper-gold developer with a huge asset in the Yukon. 15Moz Au & 6.2bn/lbs Cu. In fact, the Casino copper-gold project is so big, it may have actually restricted the company's optionality. We discuss at-length the options left to the company.
West-Sells needs to make a choice: reduce the scale of the project down to something it can more easily handle eg. US$1B heap-leach project, or bring in 1 or 2 strategic partners. This decision will be integral to the upside that Western Copper & Gold shareholders experience.
The focus right now is on locating high-grade gold zones; the project in its current form a low-grade, bulk-tonnage opportunity. Casino has a hefty US$2Bn CAPEX for an NPV (8%) US$3Bn. Do these numbers look ok to you? Is it a gold company or a copper company?
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