Stockhouse member attends information meeting, reports on the Bullboard.
Editor’s note: The following post by Horsesmouth2U appeared on the Far West Mining (TSXC: T.FWM, Bullboard) Bullboard at 11:18am EST on April 8. It has been edited for spelling, punctuation and grammar only, in an effort to make it easier to read. Click on the text link within the quote to view the post in its original form.
Stockhouse member Horsesmouth2U attended an “information meeting” held Monday, April 7, at the Calgary Petroleum Club in Calgary, Alberta, by Far West Mining. Below is the report from the meeting.
For the first 35 minutes of the meeting Rick Zimmer did a slide presentation. I found this to be very boring as it was simply a regurgitation of what has been said in the past, including the last press release. However there may have been new shareholders at the meeting that got something out of that.
At the end of that Bob Hindson stood up and said they will take questions, however, they can not comment on anything that has not been made public. Great…same-ole-same-ole.
With that said they did lighten up a bit and overall I think they gave the shareholders some hope.
Rather than repeat the questions I’ll summarize the gist of the talk.
Rick and Bob did agree with the shareholders that the scoping study was very conservative; however, Rick felt they hired the best company to do it.
They are not drilling and have not been drilling for quite a while. This was surprising. They also have no intention of drilling in the immediate future.
Rick said that the plan was to sell this property and not move forward to mine it. With that said, they informed everyone that they are dealing with more than one potential buyer. This was not said “per say” however everyone new this from their smirks and smiles.
The most important step now was to get a better handle on the iron content. They are going to spend 4 to 6 months to have a metallurgy report on the iron. This came across as very important.
They are going to spend some more time evaluating the water situation. They said they need 300 liters of water per second for this operation. Overall they were happy with the water situation on the property; however, this was one of the components they had to finalize for a potential buyer.
Both Rick and Bob admitted the stock is undervalued. With that said they told everyone they were going to undertake an awareness program immediately to get the news out that Far West has a mine. (Better late than never.)
Shareholders kept asking them if they felt the stock was ”grossly” undervalued. They avoided the word ”grossly” like the plague. This told me that shareholders should not expect big numbers when this is sold.
Near the end they brought up the net present values of the project and without giving their personal endorsements I felt they were saying that a number around $600 million was appropriate.
Throughout the entire question period it seemed that the property could be sold any day or week. It could happen that fast. On the outside it seemed like maybe 6 to 9 months. They felt that more drilling at this stage would not add value.
Disclosure: Author is currently long T.FWM. This was my interpretation of the meeting and reflects my opinions only.
This article was written by a member of the Stockhouse community.
