Ann: Quarterly Activities Report, page-50

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Drugo

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04/05/22

11:45

Post #: 61194998
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Originally posted by youwishfood: ↑

So much negativity on this WMC forum right now.
All this talk of administration etc is really over the top. The operations is profitable and cash flow positive.

The "cash burn" is from spending on capex not opex.

They are actually doing better than I would have expected. They commissioned the new concentrator and got it running up to nameplate in a very timely manner. My experience of mining commissioning is there are generally lots of teething issues that take time to iron out. They don't appear to be having these.

The capex must be close to complete with maybe $10M - $20M left to spend on Wiltails construction/commissioning/startup.

Current cash and equivalent position is actually $24.8M. I think it is safe to say gold concentrate sold awaiting pick is cash equivalent.

I would expect with 3 full months of the concentrator running close nameplate this quarter they should produce some where in the order of 20koz of gold con. With the higher through put costs should come down but even if we say AISC is still $1800/oz then operating profit for the quarter should be in the order of $12M.

If they complete wiltails some time this quarter we might even get a month of that gold dore as well. But most likely that will be next quarter.

So all going well the cash and equivalent position at the end of the June quarter should be around $15M - $25M.

Cash is getting tight but the capex should be coming to an end. If they run into issues then there is a possibility of another capital raising I guess, but they have a bit of buffer.

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I just let the clowns have their fun over the last few days.
I wonder if there was any buying by them.
How does this tea cup clown just pop up etc. Along with his merry band of goof balls.
I think Wiltails has way less money spend than 10-20 mill. to go.

WMC Price at posting: 64.0¢ Sentiment: Buy Disclosure: Held
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Ann: Quarterly Activities Report, page-50

Top Stories

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

The market's shrugged at China's stimulus measures all year. Why is this one different?

HotCopper users muse on De Grey's denial of Agnico Eagle takeover bid – but who are Agnico?

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