Despite all the hiccups and disappointments, I think that they have a reasonably good chance of getting back into profit very soon, and I'll be looking out for you rejoining the WMC ranks by the end of the year!
I'll join you gutumike! OK a long time since Blackham and, like other SHs, I got stung way back too and have the scars to prove it. However, I rejoined the flock again for another go. For what it's worth, here's some of my reasoning...
1. A gold producer with a 10 year+ mine life in a WA gold postcode, with other producers as neighbours.
2. SP so heavily discounted atm after recent CR (and dilution).
3. Numerous contingency issues which hit the company (many of which were out of their control) but they have a game plan to correct that and bring the company back into profit (OK $41 million debt repayment needed but keep reading)...
Optimising stage-1 to commercial productionThis means the gold explorer will shift its attention from original stage-2 expansion plans, which it has delayed, to bringing stage-1 up to commercial production and optimisation.
The decision has been made following economic and social circumstances of rising inflation, COVID disruptions, significant shortages of skilled labour in the state of Western Australia, shipping and equipment supply constraints, as well as the uncertainty over the war in Ukraine.
“These factors have played a major role in convincing management and the board that launching into a two year, multi-million-dollar expansion is not prudent at this time,” the company said.“A full ramp up will be undertaken by the end of CY2022 with steady stage production estimated between 110,000 to 125,000 ounces per annum.“With further minor, low-cost modifications this could increase incrementally to produce 150,000 ounces per annum.
https://unauthorised investment advice/resources/wiluna-unlocks-multi-million-ounce-opportunity-with-updated-ore-reserve-at-flagship-project/3. Wilcuna is on Don Durrett's Top 25 picks (he is a PM international mining analyst that examines 500+ miners on a service that I subscribe to).
4. The bear market in equities has just began and has a long way to go...
5. The inflation genie is out of the bottle and the Fed is well behind the curve (read more tightening and market pain)...
6. In these conditions, the macro picture for the gold and gold producers is positive long term as this cup and handle suggests...
In short, the timing could not be sweeter for this unloved gold producer imo.
A golden bird (producer) in the hand is worth 2 in the bush (explorers).
Poet
Not advice.
#StarsAlign
