It acts as a +5 enchanted weapon, but in actual fact it does 2d4+3 damage, excluding whatever bonus you get from the strength modification. Aside from that it can instant kill the two lesser types of golem and trolls (I'd include ettins, but there's only one ettin in the whole game, and ettins suck anyway). It's an exceptionally good weapon. If I were to restart my character, I'd definitely have him specialise in warhammers. It's just a pity you get it so late in the game like most of the other 'some assembly required' weapons.
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