Wallbridge Mining Company Limited

Recent Acquisition to Aid Higher Mining prospects: Wallbridge Mining Company Limited (TSX: WM) is an Ontario based mining company, which is engaged in the development and production of several metals like gold, copper, nickel and platinum group metals etc. Currently, the company is associated with several drilling activities and is in advanced stage project with potential for near-term production. Amidst the recent correction across the broader market, the stock delivered healthy returns to the investors.

WM acquired Balmoral Resources for CAD 0.62 per share. The acquisition will be resulting in higher land holdings of 85.6 sq.km from earlier 10.5 sq.km.

Operating Highlights: WM started its drilling activities during February 2019 and executed 75,000 metres by the end of the year. The company further highlighted six drill rigs at its Fenelon Gold project. Currently, the company is operating on 100,000 to 120,000 metre FY20 drill program which is expected to further define the size potential of the deposit and complete in-fill drilling in support of a maiden 43-101 resource estimate.

FY19 Financial Highlights: WM announced its full-year results, wherein the company reported a loss before income tax of CAD 2.17 million, as compared to a loss of CAD 2.20 million in FY18. The period was marked by higher operating expenses, which was partially offset by other income components and profit from sale of property and equipment. Net loss for the period stood at CAD 3.16 million, as compared to a loss of CAD 2.71 million in the previous year. The company incurred CAD 32.76 million in exploration activities, higher than CAD 23.82 million in FY18.The company exited the year with cash of CAD 57.09 million, higher than CAD 5.74 million in FY18. The company reported a significant increase in its total assets to CAD 115.70 million, as compared to CAD 56.67 million in FY18.

FY19 Income Statement Highlight (Source: Company Reports)

Stock Recommendation: The stock of WM is quoting at CAD 0.59, with a market capitalization of ~CAD 343.48 million. The stock has generated a positive return of ~73.5% and ~49.7% in the last six months and one year, respectively. During the last five trading sessions, the stock had generated a solid return of ~13.46%, outperforming the index by ~11.50%. The stock has closed above its 20 days and 200 days simple moving average (SMA) price of CAD 0.50 and CAD 0.58, respectively. FY19 exploration drilling has significantly enhanced its footprint across the Fenelon gold wherein, the company confirmed 2 kilometres of strike length, 600 metres of corridor width along the Jeremie Pluton and 850 metres vertical depth extent. With the successful integration of Balmoral Resources Ltd., the company is expected to continue its drilling activities across newly prospective gold mines. Considering the aforesaid facts and recent price movements, we recommend a ‘Speculative Buy’ on the stock a current market price of CAD 0.59, up 5.35% as on April 07, 2020.

WM One-Year Daily Price Chart (Source: Thomson Reuters)

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