WARREN BUFFETT INC. in a mining penny stock gamble


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59 Postings, 4439 Tage HornissenWARREN BUFFETT INC. in a mining penny stock gamble

 
  
    #1
06.03.12 14:56
Woulfe Mining Corp. (Woulfe) is an exploration-stage company. The Company is engaged in the acquisition, exploration and development of mineral properties in Korea. The Sangdong Project is a tungsten molybdenum deposit with bismuth and gold as byproducts and is located 187 kilometers to the south east of Seoul in eastern South Korea. Woulfe's uranium tenements lie within the Okcheon Metamorphic Belt (OMB), a north east-trending fold-and-thrust belt about 30 kilometers wide and extending some 150 kilometers through the middle of Korea. The Yeonwha 1 lead-zinc property lies approximately 20 kilometers to the south east of Sangdong. The Company holds exploration concessions in the Murchison Goldfields, in Western Australia, collectively known as the Albury Heath concessions. As of June 30, 2011, the Company held a 70% interest in the Sangdong Project and a 100% interest in the Muguek, Cheongyang, Taeback and Yeongwha properties, as well as certain uranium licenses, all in South Korea.
Formerly Oriental Minerals Inc. until February, 2010.
Employees 9 (Warren Buffett values each employee at aprx. 10M$ :-)

Numbers:
Market Cap 120M CAD
Sales 0 CAD (no sales yet, development stage, data N/A yet)
Cash 8M CAD
LT Debt 0 CAD
Assets 43M CAD (increase from 650,000CAD or by 7000% in 9Y)
Liabilities 5M CAD
EBIT -4.7M CAD (in total EBIT loss for the past decade is 23M CAD which is very small considering they have a real possibility to become the biggest Tangsten mining company in the World)
Shares Outstanding 306,850,000
Float 222,590,000
Major Shareholders (Berkshire Hathaway Inc. will be biggest with 25% stake)
Common Wealth Bank of Australia 10%+
Korea Zinc Co. Ltd. 10%+
Colonial First State Global Asset Management 4.38%
US Global Investors, Inc. (Asset Management) 2.98%
Marmite Capital Ltd. 0.39%

Auditor is KPMG Canada, Vancouver.

Press release:
Berkshire Hathaway Inc. Israeli unit Iscar Ltd. (IMC Metalworking Companies) has agreed to invest $80 million in Woulfe Mining Corp's Sandong project in South Korea. The mine was once the world's biggest tungsten producer.

"Mining Weekly" reports that the deal involves Iscar acquiring a 25% stake in the shuttered mine for C$35 million, and investing C$19.25-million in a joint venture to build a plant that will produce ammonium paratungstate (APT), the metal's tradable form, and agreeing to provide up to C$15.75-million in a loan to fund Woulfe's share of the capital cost of the plant.

Woulfe CEO Brian Wesson told "Mining Weekly" that the Sandong mine, and the APT plant will start producing early in 2013, when the operation will again become the world's biggest producer, accounting for 7% to 10% of global output - and half of non-Chinese supplies.

To achieve this, according to "Mining Weekly" Iscar will need to raise around another C$80 million in debt.
Look the chart ;-) Buffett is not stupid

All additional info: www.woulfemining.com/s/Home.asp

For German, Austria, Swiss visit: www.woulfemining.com/s/NewsReleases.asp?......

Resume: As you see Iscar Ltd. (BRK.A) (BRK.B) will raise debt for this acquisition which is very stupid in my opinion (so what if debt is cheap today?) as Berkshire Hathaway Inc. got a lot of cash & 80M$ for them is like 8$ for you to go to the bank & ask for 8$ loan, but greed knows no limits ;-) they want to risk nothing & get everything, which is not stupid at all, just greedy. On the balance sheet side everything is fine, more assets than liabilities by 800%, no debt, high insider ownership, low shareholders ownership, not much publicity which is all very, very bullish for the stock. Already it's up from the 1Y low by 300%.
Finally you would expect me to run & buy the stock immediately but I am not going to do it this way, instead I will short (BRK.B) & buy (WFEMF.PK). For each 1$ long in Woulfe Mining shares, I will sell short 3$ in (BRK.B) (ex. 10,000$ long Woulfe, 30,000$ short BRK.B) shares because I am very bullish on Woulfe but very bearish on BRK.B. Let Warren Buffett pay me for my stake in his stake :-)
I advise. You decide.

This is what Buffett loves today- a Tungsten  

748 Postings, 5623 Tage Flocke77Was will er mir damit sagen?

 
  
    #2
06.03.12 16:01

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