West Wits Mining
Primary ticker: ASX:WWI; OTCQB:WMWWF
Stage of development: Development
Primary minerals: Gold, Uranium
Project to promote: Witwatersrand Basin Project Stage 1 – Qala Shallows
Project location: South Africa and Western Australia
Website: westwitsmining.com
West Wits Mining Limited (ASX: WWI) (OTCQB: WMWWF) is focused on the exploration, development and production of high value precious and base metals for the benefit of shareholders, communities and environments in which it operates.
WWI’s Witwatersrand Basin Project (WBP), located in the proven gold region of Central Rand Goldfield in South Africa boasts a 4.28Moz gold project at 4.58g/t. The Witwatersrand Basin holds the world’s largest known gold reserves and has produced over 1.5 billion ounces (over 40,000 metric tons), which represents about 22% of all the gold accounted for above the surface. The WBP presents a revenue opportunity of USD 2.6 billion and its Phase 1 Qala Shallows’ Definitive Feasibility Study supports an underground mining operation with a robust rate of 4,03MT at 2.71g/t recovered grade for total production 924,000oz Au over a 18-year Life-of-Mine and covers a 60% subsection of the Scoping Study.
It is set at an average Steady-State production of 70,000oz per annum for 9 years at an AISC of US$871/oz. A Phase 2 is aimed at achieving a further substantial increase of production with an aspirational target of 200,000oz per annum. WBP has site infrastructure (shaft and amenities) in place and is well advanced in securing bank funding for up to 60% of project costs. The underground development already completed provides exposure to ore for extraction within 8 weeks of commencement.
Cash: AUD 2.4M
Debt: NIL
Major shareholders:
Wingfield Duran Deep – 8.0%
Citicorp – 5.5%
BNP Paribas Nominees (Retail) – 5.3%
Supernova Fund and associates – 4.9%
BNP Paribas Nominess – 2.7%
Management Ownership – 4.2%
Financials
Management Profile
Michael Quinert – Chairman
Mr Quinert is a founding partner of QR Lawyers which was established in July 2009. He has over 35-years’ experience as a commercial and corporate lawyer, including three years with ASX and over 30 years as a partner in a Melbourne law firm.
Mr Quinert has extensive experience assisting and advising companies on IPOs, capital raising, cross border transactions, regulatory compliance and has regularly advised publicly listed mining companies.
Michael is a Non-Executive Director of publicly listed First Graphene Limited ASX:FGR))
Rudi Deysel, Chief Operations Officer & Country Manager (South Africa)
Mr Deysel holds degrees in B.Sc (Geophysics) and B.Eng (Mining) and has obtained his MBA.
He has extensive production experience in conventional narrow tabular underground, as well as open cast, mining various commodities including Gold, PGMs, Copper and Cobalt. Mr Deysel project managed several brown- and greenfield mining projects in South Africa, the DRC and Ghana, which led to extensive experience in mine development, including scoping-, pre-feasibility, feasibility, development and execution.
Before joining West Wits, Rudi was part of line management at Anglo American, after which he joined Murray-and-Roberts Cementation with the main focus on underground mine infrastructure, construction and contracting. Through ERG Africa, his technical input established strong management operating systems at its various operations in Africa. At Asanko Gold, he was part of a senior management team that facilitated strong technical and financial principles at their Ghanian operation.
What is your rationale for taking part in 121 Mining Investment?
What recent news would you like to highlight to investors attending?
– West Wits focused on securing funding for its Qala Shallows mine, with a South African Development Finance Institution (“DFI”) completing its due diligence last quarter. The DFI has since moved to finalise its internal approval process.
– Progress is being made on the approval process with a commercial bank, which proposes joining the DFI in providing a syndicated senior debt loan to cover 50-60% of the mine’s development costs. This commercial bank has completed due diligence and is moving to credit approval.
– Qala Shallows: poised for operation, marked by strategic initiatives, completed
infrastructure projects, and finalised contracts.
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
Securing the proposed syndicated loan which would lay a strong foundation for completing the remaining project funding. Meanwhile, West Wits continues discussions with other potential sources of capital to ensure full funding is achieved. Securing the necessary funding remains top priority. Once the financing is in place, Qala Shallows will quickly move into execution phase. The site is ready, the principal contractor has been appointed, and all permits and infrastructure are secured.
6 Months:
With funding finalised, West Wits expects to begin ore stockpiling within eight weeks of commencing operations. The Company is prepared to manage any potential disruptions with built-in contingencies, ensuring it can remain agile and respond effectively to unforeseen challenges.
12 Months:
Over a three-year development period, the Company plans to ramp up to steady-state production of 70,000 oz of gold per annum at an all-in cost of under US$1,000 per oz.
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
What do you think makes your company such a compelling investment?
What are the top 3 key investor takeaways?
1) Qala Shallows (Stage 1) – Robust DFS aimed at 70,000oz p/a steady-state production for 9 years
2) Qala Shallows – DFS Post Tax IRR 72% & NPV US$366M at US$2,200/oz gold price and with current gold price is substantially above this.
3) Qala Shallows – Turn-key ready: regulatory approvals in place (MR, Environmental, Power, Water, Explosives), site infrastructure maintained; key suppliers determined