Western Sierra Resource Corp (WSRC)

[Renegades17]

I think the water rights alone justify double our current stock price



Resource scarcity is a theme that will last for some time. The water rights, just on an annualized basis, should deliver $4mm in net income. The appraised value was over $40mm and that appraisal does not reflect current market fundamentals.

Let's look at the revenue projections that the company tweeted a few days ago:

2022: $75.8mm
2023: $454.6mm
2024: $1,156mm

Clearly, the market needs more confidence in the projections otherwise the stock would be trading at $0.50-$1 already. That said, if one applies a 3x multiple to 2024 revenue, that equates to a $3.4bn market cap. That's a $10 stock in the future and if one discounts back at 25%, that's a $6.40 stock currently. Keep in mind, large cap miners with little growth trade at 4-5x revenue and WSRC should grow demonstrably faster.

I've reached out to IR to provide an opinion on what the company needs to do to improve the stock price. If others have ideas, I would suggest doing the same.