Fund Manager Summary on WA1 Resources Ltd (ASX:WA1)
WA1 Resources Ltd (ASX:WA1) is viewed positively by fund managers, particularly following Datt Capital's June 2025 commentary, which highlights its significant niobium deposit, the world's second-best, with approximately 200 million tonnes at 1% grade. This multi-generational asset positions WA1 favorably within the burgeoning critical metals market, especially as niobium has primary applications in specialty steel alloys and emerging uses in battery technology. While the project benefits from being in Western Australia, a leading mining jurisdiction, it faces operational challenges such as project commercialization, permitting, and MRE updates. Managers consider WA1 a high-conviction pick over the next 12 months, emphasizing both its potential for acquisition by a major player and the associated market pressures stemming from evolving industrial applications.
Commentary From The Managers
There are 3 insights from 2 fund managers regarding their investment in WA1 Resources Ltd (ASX:WA1) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Datt Capital
6 June 2025
$14.14
Summary
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Endeavor Asset Management
31 May 2024
$21.20
Summary
- Endeavor Asset Management sold their investment in WA1 Resources (WA1) shares after a significant price increase.
- WA1 shares experienced a 23% surge in May.
- The company's market capitalisation increased from approximately $600 million to over $1 billion.
- This growth was driven by a highly successful drilling campaign conducted since the initial investment.
- Endeavor exited WA1 during the month at an average price of $20 per share.
- The exit captured a 100% return on their initial entry price within four months.
Endeavor Asset Management
28 Feb 2024
$13.10
Summary
- WA1 is a groundbreaking niobium discovery in Western Australia.
- Since our initial investment at $10 per share in February, it has returned 29%.
- Niobium is a critical mineral, essential for advancing a low carbon economy.
- This highlights the significance of WA1's role in this sector.
- The stock trades significantly below our internal Discounted Cash Flow (DCF) valuation.
- This suggests substantial upside potential for our investors.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in WA1 Resources Ltd (ASX:WA1)?
Fund managers including Endeavor Asset Management and Datt Capital have invested in WA1 Resources Ltd (ASX:WA1).
Why do fund managers invest in WA1 Resources Ltd?
Fund managers invest in WA1 Resources Ltd due to its significant asset in niobium, highlighted as the world's second-best deposit, estimated at 200 million tonnes. This multi-generational deposit is crucial for specialty steels and emerging battery technologies. The company's location in Western Australia enhances its appeal, as it is known for favorable mining conditions. Additionally, ongoing development activities and potential for major acquisition interest from larger companies contribute to a favorable risk/reward profile.
What happened to WA1 Resources Ltd (ASX:WA1)?
There have been no recent updates from fund managers regarding WA1 Resources Ltd although fund managers including Endeavor Asset Management and Datt Capital have previously commented.
What is the short interest in WA1 Resources Ltd (ASX:WA1)?
The short interest in WA1 Resources Ltd (ASX:WA1) is 0.43% which makes it the 298th most shorted stock on the ASX. Of the 74.3M shares that WA1 Resources Ltd has on issue, 321.0K have been sold short.
What does WA1 Resources Ltd (ASX:WA1) do?
WA1 Resources Ltd. engages in the exploration, evaluation, and development of mineral resources. Its projects include West Arunta and Madura. The company was founded on January 2, 2021 and is headquartered in Subiaco, Australia.