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    West Red Lake Gold Mines (TSXV:WRLG) Valuation After OTCQX Upgrade and Progress Toward Madsen Mine Production

    Simply Wall St·12/25/2025 08:31:29
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    West Red Lake Gold Mines (TSXV:WRLG) just upgraded its U.S. listing to the OTCQX Best Market, right as it moves toward commercial production at the Madsen Mine, a combination that could reshape how investors value the stock.

    See our latest analysis for West Red Lake Gold Mines.

    The upgrade to OTCQX and ongoing work at Madsen and Fork appear to be feeding into strong momentum, with an 80% year to date share price return and an 83.05% one year total shareholder return, suggesting investors are steadily repricing the growth story.

    If you like the asymmetry of early stage producers like West Red Lake, it is worth exploring fast growing stocks with high insider ownership for other under the radar growth ideas with committed owners.

    With the share price already up sharply and analysts still seeing upside to nearly CA$2.00, the real question now is whether West Red Lake remains mispriced or if the market is already discounting its next leg of growth.

    Price-to-Book of 14.5x: Is it justified?

    On a last close of CA$1.08, West Red Lake trades at a steep premium to its sector, and the core question is whether that pricing reflects realistic expectations.

    The preferred multiple here is the price to book ratio, which compares the company’s market value to its net assets on the balance sheet, a common yardstick for metals and mining names with limited current earnings.

    With West Red Lake on 14.5 times book value versus roughly 3 times for the wider Canadian Metals and Mining industry, investors are clearly paying up for anticipated growth, future profitability and asset potential rather than today’s tiny revenue base and current losses.

    Against that backdrop, the stock screens expensive relative to the industry. However, it still appears cheaper than a narrower peer set where the average price to book multiple is 19.6 times. This suggests the market is assigning West Red Lake a premium, but not the highest growth rating available in its niche.

    See what the numbers say about this price — find out in our valuation breakdown.

    Result: Price-to-book of 14.5x (OVERVALUED)

    However, risks remain, including persistent losses, execution challenges in bringing Madsen into steady production, and the possibility that analysts revise growth expectations or price targets.

    Find out about the key risks to this West Red Lake Gold Mines narrative.

    Build Your Own West Red Lake Gold Mines Narrative

    If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes: Do it your way.

    A great starting point for your West Red Lake Gold Mines research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.