Our subscribers caught the move earlier this month in Westwater Resources Stock before the stock took a dump. We even told our subscribers to expect the selloff. We said:
While there might be some short-term profit-taking after last week’s move, dips are a discount entry opportunity.
Many of our subscribers emailed thanking us saying they got out between $10 and $12. Now, with shares just above $4, it’s time to get back in and buy the dip.
Westwater Resources stock has a float of just 5.04 million and a market cap of $56 million. It doesn’t take much money to move the stock. This is why we love low float plays like Westwater Resources stock.
These are some of the best setups to find and one which we specialize in finding here at Insider Financial. It’s all about finding the low floater bidding higher in the pre-market and then jumping on board. The algorithms and the shorts getting squeezed do all the rest. Just sit back and ride the wave.
One of the issues with low floats is that many are pumps and dumps. The stocks lack fundamentals to sustain the price increase and as a result, many get left holding the bag. This is NOT the case with Westwater Resources stock. In this article, we will explain why.
Westwater Resources Stock
The excitement surrounding Westwater Resources is because this junior miner has the ONLY battery-grade graphite mining project in the continental United States. The U.S. has NO current production of natural graphite.
The Company’s battery-materials projects include the Coosa Graphite Project — the most advanced natural flake graphite project in the contiguous United States — and the associated Coosa Graphite Mine located across 41,900 acres (~17,000 hectares) in east-central Alabama. Processing pilot plant operations are scheduled in the fourth quarter of 2020, producing ULTRA-PMGTM, ULTRA-DEXDGTM, and ULTRA-CSPGTM in quantities that facilitate qualification testing at potential customers.
One of the reasons for the recent drop in Westwater Resources stock has been concern about the U.S. Presidential election. Prior to his hospitalization for COVID-19 and in a bid to reduce dependence on China, President Donald Trump signed an executive order on October 1st aimed at expanding domestic production of rare-earth minerals that are vital to many critical manufacturing sectors.
The order, which declares a national emergency in the mining industry, directs the Interior Department to explore using the Defense Production Act to hasten the development of mines.
The order also states the Interior and Energy Departments should encourage the development and reuse of old coal waste areas, the material on old mining sites, as well as abandoned mining sites for recovery of the critical minerals.
Many investors are banking on Trump; however, Joe Biden is also in favor of US-based production of metals used to make electric vehicles, solar panels, and more, according to Reuters, which cited three sources familiar with the matter.
The U.S. Government has struggled in recent years with growing dominance from China over critical minerals – China has become the world’s largest producer or consumer of rare-earth metals, which are used for electric vehicles, smartphones and computers, weapons and defense systems, and other technologies. China controls more than 90% of the world’s production of rare earth minerals.
Sources speaking anonymously to Reuters said that Biden agrees with the intent of Trump’s orders to encourage domestic mining, but is opposed to Trump’s anti-China rhetoric as well as his attempts to streamline federal permitting.
The Biden campaign has pledged to work toward a more sustainable future, and if elected, Biden will invest $2tn in accelerating a clean energy economy, supporting infrastructure projects, and an ambitious plan to achieve a domestic, carbon-free power sector by 2035.
A key part of this domestic push for clean power will come from solar, and solar panels are one technology that requires the critical minerals the US currently lacks.
Westwater Resources Stock Graphite
Westwater has taken delivery of 30 metric tonnes of natural flake graphite concentrate at Dorfner Anzaplan’s facility in Hirschau, Germany. The material will be utilized in the pilot plant currently being constructed at Dorfner Anzaplan’s facilities, as well as at other facilities in Germany and the US. This combined effort is expected to produce over 10 metric tonnes of three trademarked battery graphite products by the end of Q1 2021.
Westwater will measure all inputs, such as energy and reagents, as well as all outputs that will be used in the Bankable Feasibility Study expected to conclude by mid-year 2021.
The feasibility study includes a plan for the final design of the commercial production facility and forms the basis for the construction of the facility from mid-2021 through 2022. Plant commissioning is expected in the last quarter of 2022.
Westwater has applied for a Provisional Patent with the U.S. Patent and Trademark Office for its proprietary graphite purification technology.
Read Between The Lines
With the 30 metric tons of graphite in Germany plus VW going all-electric in a few years one only has to connect the dots. Look for some kind of agreement to supply VW and other EV manufacturers or perhaps some kind of partnership. This is probably currently being discussed in executive board rooms already.
Westwater Resources Bottom Line
Almost 30% of the float has been borrowed by the shorts. We expect the shorts to get squeezed once the next PR drops that Westwater Resources stock has a supply agreement with VW or Tesla for graphite. We are also expecting Westwater to collect $36.5 million-plus fees that Turkey owes the company. Furthermore, Westwater Resources will be a winner no matter who wins the Presidential election. With these catalysts at play, our price target on Westwater Resources stock is $20.
As always, good luck to all (except the shorts)!
WHEN INSIDER FINANCIAL HAS A STOCK TIP, IT CAN PAY TO LISTEN. AFTER ALL, OUR FREE NEWSLETTER HAS FOUND MANY TRIPLE-DIGIT WINNERS FOR OUR SUBSCRIBERS. WE SPECIALIZE IN FINDING MOMENTUM BEFORE IT HAPPENS!
Disclosure: We have no position in NASDAQ:WWR, or any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.