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WMC wiluna mining corporation limited.

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Ann: Matilda-Wiluna Production Update, page-107

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kyngdominion

2,473 Posts.

1931

10/01/18

18:11

Post #: 30203606
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Originally posted by IceyDoctor ↑

Hi,

OK to much to read so I didn't even bother... Sorry I just could not resist that one. (Just kidding)

No need to argue on this, as I said all I wanted to do was balance out 1 sided figures used as evidence for advise that is not warranted until the the offer is actually on the table!

I understand and appreciate your arguments, particularly regarding Pacific Road walking away. It still is a concern that warrants any prospective investor having a good answer for. I discussed a few of my thoughts, regarding their underwriting an unpopular capital raising. I think the capital raising was unpopular because the financing deal was not finalised, and the rest of us had no proof of any improvement over the quarter.

There are two parts to the solution, the funding arrangement and the capital raising. I wait to see the details of both, and more details on the finances before I decide. Previously they had everything will be fine because there will be an improvement in ... (everything) next quarter. It was a big ask after many disappointments. Now they have finally shown a (possible) improvement if they fill in all the gaps still, it is easier to believe they can keep up what they have already shown, than do something they have only promised.

What I want to see most of all is the refinancing deal, announced only when it is done and dusted so there are no further questions or uncertainties in the market. Pacific road were in to make a profit as much as they could. The debtors are in it to get their money back, and I want to know how they rate their chances from continuing operations vs VA. Do they have the confidence to give BLK plenty of room, or are they grabbing each cent as it comes in the door?

You comment again on last quarters AISC as do others, and I agree it was bad for them not to include it on the report, however I do not think it had any influence on sophisticated investors. The AISC margin multiplied by the production is just too simple, it is not consistent between miners and quarterlies. It is deceptively easy for investors to believe in, but if you compare this with the cash profit you find that there is a difference between the AISC margin and what cash they actually make, and even worse this varies widely between gold miners. AISC is useful and much better than cash values reported before, but it does not tell the full story.

BLK's last quarterly shows the cash movement, operational proffit, capital and investment and financial expenditure. These figures tell you a much better picture of what is actually happening, and any sophisticated investor or fund will be looking at these first. If anything the AISC tells you if a goldie is trying to hide anything or pimp their results. After saying all this I would expect they will report the last quarters AISC this quarter when it comes.

If it comes down to the Mums and Dads investors saving the sinking ship then I will certainly not be recommending it. However there should not be Mums and Dads investors in a stock like this to start with, unless it is with 1-5% of their portfolio, so even VA is only a 5% loss in their portfolio. Anything else is just (I am very sorry if I offend) irresponsible to advise them otherwise.

Let's discuss the quarterly on its own merits, or compare it to the forecast from last quarter to see what has changed. It can tell us the best we can expect and we already know the worst (VA). It can not be used to justify a decision on a deal that is not on the table yet so why waste time there?

I did like the fact they informed us holders so promptly and in plenty of time to digest (I like my quarterlies with single malt scotch whisky) before any decision needs to be made.

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Ok we should agree to disagree - However I really would like the 2nd question answered as it was the main reason I sold out completely ....I have asked before but never had an answer on this forum.

"With all the high grade announcements why is the grade so low"?

Mar 12, 2012 More High Grade Hits at Matilda
Nov 20, 2014 Increase to High Grade Quartz Reef Resources
Sep 24, 2014 Galaxy confirmed as high grade, shallow open pittable with hight processing recoveries
Sep 17, 2014 High Grade Matilda Results
May 12, 2014 Galaxy Delivers Best Ever Drill Results
Apr 28, 2014 Further High Grade Results from Matilda Mine
Mar 18, 2014 Galaxy Drilling Confirms High Grade Shallow Lodes
Dec 29, 2015 Williamson Drilling Delivers both High Grade and Broad Mineralisation
Nov 18, 2015 Blackham Discovers New Lode at Williamson 2m @ 95g/t
Nov 5, 2015 Further High Grade Galaxy Results
Oct 7, 2015 High Grade Success at Matilda
Sep 15, 2015 Golden Age Results Confirm High Grade Deposit
Sep 8, 2015 Further Drilling Success at Matilda
Aug 27, 2015 Further high grade Galaxy results
Aug 21, 2015 NEW SIXERS LODE DISCOVERED AT MATILDA
Aug 10, 2015 Extremely High Grade Golden Age Results
Jul 27, 2015 Golden Age Visual Gold
Feb 9, 2015 High Grade Bulletin South Resources
Aug 24, 2016 High Grade Intercepts at Golden Age
Aug 16, 2016 High Grade Intercepts at Bulletin
Jul 18, 2016 High Grade Intercepts at Wiluna
Jul 1, 2016 Outstanding Drilling from Essex
Jan 25, 2016 High Grade Quartz Reef Resources Flourishing
Jan 14, 2016 High Grade Quartz Reef Update
Nov 27, 2017 High-grade Intercepts at Bulletin Mine
Jul 3, 2017 Further outstanding Wiluna drilling results
May 22, 2017 Exceptional Wiluna drilling results

BLK Price at posting: 10.5¢ Sentiment: Sell Disclosure: Not Held
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