Ann: Red Cloud Pre-PDAC Mining Showcase Presentation, page-25

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Sherlock Buffet

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16/03/23

13:38

Post #: 66802080
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Originally posted by speculator101: ↑

Some interesting moves in POG in AUD without a doubt.
All very helpful as WGX has just recently reduced its amount of hedging per month down from 39k per quarter (13k a month) to 30k per quarter (10k per month), meaning more unhedged sales (as per your post at the top of the thread Wassa). I can only post into the web that WGX does NOT NEED to hedge again, but instead just buy put options (especially if they don't require a debt facility again). I have spoken to MDs and sector analysts on and off for years about options, but by and large they are looked up on as a poor option (no other word), yet... if more producers on average had simply bought options, they would all be receiving much much higher spot prices! Just look at RRL. They are losing in excess of $50m a quarter in revenue.

Anyway, perhaps... whilst the downside is amplified, WGX is better off being fully unhedged either way.
I think there will come a time where hedging very high gold prices over a 2-3+ year period, is going to make sense (though I imagine at the time few if any producers will do it, just like few if any oil producers hedged at $140 USD per barrel only a few years ago), but for the few that do.... wow, the tail end of the earnings will make a few stalwart investors... very happy.

12 months ago, I really though 2022 was going to be a year to remember in the financial markets, but... it would seem 2023 is going to perhaps be a little more 'interesting'. WGX could come out with all sorts of small announcements, but... in the end what is going really drive the share price is a quarterly which shows real.... unequivocal cash increase (AIC being below the average price sold).

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Dear speculator101,

If one assumes that the flabbiness is wearing off and the turnaround is real by the end of this FY, what do you see is the immediate future of the company? Do you think they will put the cash to work through buying a company? I suppose, how will they get above the 250,000ozpa?

Interested to read the members' views on the next phase of growth.

WGX Price at posting: $1.08 Sentiment: Buy Disclosure: Not Held
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Ann: Red Cloud Pre-PDAC Mining Showcase Presentation, page-25

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Ann: Red Cloud Pre-PDAC Mining Showcase Presentation, page-25

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