Would love to see them hire an experienced and well accomplished executive director. Clearly judging by PC's comments, he is ready to move aside to take up a roll as a non executive director. It feels like there are a lot of unknowns around a company that has been renowned for it's disappointing guidance misses, and lack of general communication with it's stock holders. The talk has recently been of positive inflection points and continued increases in production with lowering capex. Talk is cheap though when their talk has not been historically corresponding with achieved results.
Even looking at a worse case scenario production wise of 225,000 oz pa at an AISC of $1500 and a gold price of $2450 it still looks cheap. 225,000 x margin $950 = $213,750,000 Capex $30,000,000 per quarter x 4 = $120,000,000 $213,750,000 - $120,000,000 = $93,750,000 Tax $93,750,000 x 30% =$28,125,000 EBITDA = $65,625,000 ($65,625,000/423,860,000) = EPS 15.5c PE/RATIO = 11 Obviously hedges will eat into that margin but added an extra $10,000,000 to forecasted capex for FY22
Market Cap $746,000,000 - Cash $178,000,000 = EV $568,000,000
WGX Price at posting:
$1.75 Sentiment: Buy Disclosure: Held
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