I dunno what gold is going to do before the Fed does start cutting interest rates, but expectations are that after they do, the gold price will head higher and keep going at least until they stop that process.
My hope is that Cookie stays away from DCN, WGX still have a lot of capex this year, which is why they have had to sell assets. Whether WGX wants to pick up something during an assets fire sale from administrators is the question for me. Cookie would be mad to to take on DCN's current debts. I think the plant would have some value but the gold deposit is marginal even at the current higher gold price given the debts on hand and hedging, but perhaps not at AUD 2200. Electra is a respected geologist who posted on the DCN thread about the gold deposit being rather limited, if you can follow his drift, in an exchange with Eshmun.
WGX itself is not out of the woods yet, it has been burning cash for several years and my hope is that the market and major shareholders like Paradice are correct in pushing the share price higher recently. The higher AUD POG makes WGX's higher cost operations increasingly attractive.
Good luck.
loki
WGX Price at posting:
$1.69 Sentiment: None Disclosure: Held
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