New long-term-position (2nd largest) added to the portfolio - Wolfden Resources $WLF.V

Kurs: 0.26
Mcap: 33M CAD
Børs: TSX-V (Canada)

Ownership:
Altius: 14%
Kinross Gold: 10%
Insiders: 9%

Bear Analyst PT: 0.45 (+80%)
Avg. Analyst PT: 0.7 (+180%)
Bull Analyst PT: 0.95 (+280%)
Wolfden is ticking ~95% of all my boxes when investing in these types of mining stocks. While the stock is extremely undervalued and under the radar in the mining community, the majors have their eye on Wolfden. Below I’ll walk through the case step by step 👇🏻👇🏻👇🏻
Assets ⛏🇺🇸🇨🇦
- Pickett Mountain, ME (Zn-Pb-Cu-Ag)
- Big Silver Project, ME (Ag-Au-Cu-Pb-Zn)
- Tetagouche, MB (Pb-Zn-Ag)
- Nickel Island, MB (Ni)
- Rice Island, MB (Ni-Cu-Co)
All of Wolfden’s assets are out of North America. While the current focus are on Pickett Mountain where a very successful drilling program with large upside is ongoing, the Big Silver Project was added to the portfolio on 2/12

https://finance.yahoo.com/news/wolfden-adds-big-silver-project-110000352.html

https://finance.yahoo.com/news/wolfden-reports-discovery-additional-mineralization-110000820.html
Wolfden Adds Big Silver Project in Maine

Historical results indicate a significant silver-rich polymetallic systemTHUNDER BAY, ON / ACCESSWIRE / December 2, 2020 / Wolfden Resources Corporation (WLF.

https://finance.yahoo.com/news/wolfden-adds-big-silver-project-110000352.html
Pickett Mountain is a broad base metal asset in Maine, Canada. While Maine has historically not been a pro-mining state, the legislation changed in 2017 with greater opportunities for underground mining.
Recently the market has completely missed some amazing drill results from Pickett Mountain and apart from 4 large anomalies that may lead to a significant increase in the current resource of 4-5000 tonnages, they are planning to drill in other areas of the 30 km land package.
The Great Silver Project was as mentioned added to the portfolio through an earn-in agreement on 2nd of December. Historical samples indicate very high-grade silver and initial work is to assess the data and plan a drill program for 2021.
The remaining assets out of Manitoba in Canada are Nickel, Copper and Cobalt focused being right in the center of the ongoing Electrical Vehicle craze. Further plans for the exploration of these are scheduled to 2021.
Capital Structure & ownership 🔖
Insiders own approximately 9% of shares in the company with Non-executive director Ewan Downie (CEO and President, Premier Gold) and Wolfden CEO and President Ron Little owning 2% bought in the market with some above current prices
Apart from insider ownership being on point, the remaining capital structure is also very attractive. The two majors Altius (600M mcap) and Kinross Gold (12b mcap) owns 14 and 10% of shares respectively with additional unexercised warrants as well. Always a good sign!
Leadership 👨🏼‍💼💼
- Ron Little is the CEO and President of Wolfden. He has previously founded and led Orezone Gold and Resources for 20 years building one of the most successful exploration and mine development track records in Burkina Faso
- Ewan Downie is the non-executive chairman of Wolfden. He is also the CEO and President of Premier Gold Mines and was the previous founder of Wolfden sold for 363M to Zinifex in 2007
- Don Bubar is a director with more than 40 years of experience as a geoscientist in mining
- Don Dudek is VP of exploration and is one of the most renowned explorers in Canada holding more than 40 years of experience in various roles in juniors and majors.
Analyst coverage 🔍
Relative to many other junior miners, Wolfden has drawn attention from several objective analysts. 3 are covering with a 80-280% upside not taking recent discoveries at Pickett Mountain and the earn-in of the Big Silver Project into consideration
Additionally, Kaiser Research did an interview with CEO Ron Little and Don Dudek during the summer. Kaiser Research has no material interest in Wolfden, yet the analyst was talking about both 4 and 10 CAD based on potential upside from Pickett Mountain solely.
Capital 💵
As of June 30, Wolfden had 3 mio in cash and 11 mio outstanding warrants. In January, the CEO sold lumber (Maine is a green area) for 4.5M over 5 years with 3M upfront and 1.5M additionally over the coming years
However, Ron Little have no issue raising capital with the projects, majors, etc. involved in Wolfden - and the interest is there. However, he thinks Wolfden is extremely undervalued and has no interest in raising money at current prices due to the low liquidity of the stock
Regulations 📝
One of the challenges with Maine is that they have been very reluctant to mining over the last decades up until 2017. Maine is a green area with large forests and thus a great focus on environmental impact. However, in 2017 the regulations changed.
Previously it was not possible to mine in Maine but with the new regulation, you are allowed to do underground mining (suits perfectly with Pickett Mountain geology) with limited environmental impact. Simultaneously, Ron Little is aware of the regulatory challenges.
He has been focusing on lobbying the community significantly and has a great relationship with the land owners (lumber companies - neighbors of Wolfden’s assets). He has an aspiration of creating 100 jobs in the area and create excess monetary value of for Maine as a state.
Also, there are significant advantages of being the first and only mining Co. in Maine. Historically, the geology indicates significant resources below the surface and as no companies are sitting at the table next to Wolfden, assets like Great Silver Project are available.
Summary 🧐
✅ $WLF.V is an extremely undervalued mining company with huge upside
✅ The portfolio of assets are diverse and focused towards attractive metals
✅ Drill results at Pickett Mountain have been phenomenal with more to come in the weeks and months to come
✅ Analysts are all over Wolfden with PTs 80%, 180% and 280% above today’s price
✅ Management is extremely experienced and competent with previous success in former positions
✅ Capital structure is extremely attractive with Kinross and Altius having 25% of outstanding shares
✅ Insiders own ~9% of shares with the CEO having 3 mio shares all bought in the market with some above today’s price
✅ Huge upside from today’s 4-5000 tonnages proven resources due to top cuts and high-grade mineralization and discoveries at Pickett Mountain
❓Wolfden will likely raise capital during 2021. However, with bullish metals it should be no problem to attract institutions or majors at higher prices
❗️Maine is a conservative mining state creating a challenging mining environment
❗️Low liquidity stock due to low free float
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