WAF are going ahead regardless of sentiment and cynicism and there are certainly no cluts's running the show. They are financing the project with senior debt to minimize dilution.
As for price of gold..WAF have an all in site cost of $530 per ounce for the first 3 years. Where do you think POG will be by 2020 ?
If it doesn't rise production will flatten and leverage will come also from supply and demand rather than just Fed policy statements. Strong early cash flow is a very important attribute for new projects.
Of the peers I mentioned none have an IRR of 30% with gold at $1100 per ounce. Yet they trade at multiples of WAF.
As far as I can see fear is all that is holding it back. Macquarie aren't fearful thankfully and are funding the current study. Once the bankable is out I am sure the big investors will come.
GRY Price at posting:
6.7¢ Sentiment: None Disclosure: Not Held
WAF Price at posting:
8.4¢ Sentiment: Buy Disclosure: Held
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