Solid quarter with cash build of $25 million - second quarter of strong cash build - lots of cash.
If WGX can keep that up whilst replenishing reserves it will have to be re-rated eventually.
Only 475 million shares on issue - a 10 cent dividend would only cost $47.5 million which can easily be covered by 2 quarters of cash flow leaving the other 2 quarters for growth.
The price of this stock relative to its peers beggars belief.
RMS has now the twice market cap with half the reserves - go figure.
WGX has an EV of around $550 million with 2 million ounces of reserves valuing reserves at around $275 an ounce when margins are close to $1,000 with another 6 million ounces on top of that.
Either WGX is going to be taken over or do a take over.
Has the expansion study mentioned below come out yet - it must be due soon.
GLTA/IMHO
WGX Price at posting:
$1.64 Sentiment: Buy Disclosure: Held
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