ASX:WA1
WA1 Resources Ltd
Investment Summary
The fund managers believe WA1 Resources Ltd presents a compelling investment opportunity, particularly in light of its groundbreaking niobium discovery in Western Australia. Since Endeavor Asset Management's initial investment at $10 per share in February, the stock has demonstrated a strong performance with a 29% return. The significance of niobium as a critical mineral for a low carbon economy emphasizes WA1's role in advancing sustainable technologies. By May 2024, the stock price had surged to $21.20, reflecting a 23% increase within the month, attributed to a successful drilling campaign that boosted market capitalization from $600 million to over $1 billion. Ultimately, the fund managers realized a 100% return upon exiting their investment at an average price of $20 per share. In their opinion, this performance suggests substantial upside potential for future investors.
Commentary From The Managers
Endeavor Asset Management
31 May 2024
$21.20
- 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
- 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.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.