Whoisit, nice pick! Here some more info and a few thoughts. Including inferred ounces they sit at 18 milllion AU ounces. Optionality play at higher prices for sure.
Western Copper and Gold has a huge copper/gold project in Canada (Yukon) called Casino. If they can get financing ($2.5 billion capex), and both copper and gold prices hold up, this could be a 25+ bagger. If you value this as a 250,000 oz per year long life low cost gold mine, it is highly undervalued. The current FD market cap is only $61 million. But if they can't find financing and have to sell, the returns will be much less. If the buyout is from a major, the returns could be much less than your expectations. And if copper and gold prices don't stay high until the end of the decade when they begin construction (2019 or 2020), then it could be less (and potentially the mine might not get built).
This project could be a low cost cash flow machine ($200 million to $500 million per year). They are going to produce around 250,000 oz of gold, 1.5 million oz of silver, 175 million lbs of copper, and 16 million lbs of moly for 20+ years. And this does not include their inferred resources of nearly the same totals. Thus, they could easily increase production. Will this project get built? Will copper demand remain strong? These are high risk questions. Perhaps the smart play is to wait and see if they can get financing and the terms. One interesting question is if it is economic at $2,500 gold without any copper production. If I believed in copper, I would be an investor.
Dilution should remain low. They have enough cash to complete permitting, which is due in 2018.
