Western Copper and Gold Corp. (WRN:TSX; WRN:NYSE.MKT) submitted an environmental and socioeconomic effects (ESE) statement for its Casino copper-gold-silver-molybdenum, open-pit project in west-central Yukon to the Yukon Environmental and Socioeconomic Assessment Board (YESAB), reported Agentis Capital Analyst Michael Gray in an Oct. 7 research note.
"As Canada's top critical minerals asset by gross domestic product (GDP) impact and significant tax cash flows, WRN merits a much higher multiple," wrote Gray.
Trading at a Discount
At the time of his report, the Canadian explorer-developer was trading at about CA$2.98 per share, at a price:net asset value of 0.08x, a significant discount to its peer average of 0.58x, the analyst wrote. Agentis does not have a target price on Western Copper and Gold.
The company has 200.6 million shares outstanding and a market cap of CA$597.8 million.
Focused on Permitting
Gray explained the next steps with YESAB. Now that it has Western Copper and Gold's ESE, YESAB has 60 days to review it and request additional information if needed; this part of the process can take up to 120 days.
Next is the YESAB panel review process, which Agentis expects to start in Q1/26. If it does, Western Copper and Gold could receive a permitting decision in 2028. In the meantime, the company likely will make other permit-related efforts, most notably impact benefit and/or development agreements with First Nations, Gray highlighted. He pointed out that the Selkirk First Nation, for example, is "very commercial," the analyst wrote. In fact, it formed the entity, Selkirk Copper Mines, to take ownership of the Minto copper-gold mine, now on care and maintenance.
Grid Connector Being Studied
Gray also noted that "Yukon infrastructure tailwinds continue." In the most recent development, the Yukon Development Corp. commissioned a high-level benefits analysis report to facilitate completion of the prefeasibility study (PFS) of connecting the power grid between the Yukon and northwest British Columbia.
A previous report, prepared in September by Midgard Consulting, estimated the transmission line to cost CA$4 billion (CA$4B).
This line "would unlock Casino to deliver CA$52.6B-plus in GDP impact," wrote Gray.
Events to Watch For
Potential events that could boost Western Copper and Gold's share price include the start of the YESAB panel review, expected in Q1/26; completion of the Yukon PFS grid connection study, due next year; and additional agreements with the Selkirk First Nation and the Little Salmon Carmacks First Nation, between H2/26 and H1/27.
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