Ann: Westgold Trading Update, page-16

@speculator101

I suspect you are looking for reasons to buy WGX.

My take is WGX is in a very promising position right now. It's like profiting on other people's frustration, money and hard work. It is trading at a discount due to past repetitive under-performance. On my multiple conversation with management they have justified those under-performance with necessary investment in the business for the future. I think they have spend nearly 300 million dollars at Big Bell.
My questioning of need to buy the mining contracting business was answered stating ....it was a necessary decision in order to not jeopardize the whole WGX mining operations. They think the underground mining business has a minimum value over $200 million. With the recent development and announcement it can be assumed that they will spin out the underground mining business as a separate entity.

WGX hedging is a flat $2010 per ounce for 10000 oz's/month for the next 20-22 months. Not great but some miners are still working on a AUD $ 1550 hedge.

My questioning of the need of the recent CR was answered as the Fund was literally at the door with the money to take a position. An offer too good for the management to refuse. While I am not thrilled about a small dilution but the CR was at fair price of $2.25. ( I had my BS radar on full alert during that conversation)

I admit WGX is not my best gold miner yet, but truly believe I''ll get opportunity to sell over $2.50-3
If the market had full trust and confidence, the stock would be trading between $3-3.50.
The stock is tightly held, tight share register, heavy hitting institutions are involved and with very little retail interest. The trading is very dodgy. Violent 10-15 cents swing on no news or gold price movement. Also often bucks the trend, up on a gold down day and down on a gold up day.

If you haven't noticed, recently it has the best BUY/SELL market depth in my memory. Maybe the word is getting out and many people just like you have started looking at WGX with detective lens.

At a same production level
All are debt free.
WGX has the largest resource and reserve out of the 3.

SLR- 1.93 Billion Market Cap
RMS- 1.60 Billon Market Cap
WGX- 930 Million Market Cap

In 3-6 Months time, I suspect WGX will have the largest production profile..

What will be the market cap then of these 3 companies ???????

I eat my own pie so have diverted my funds from SLR ,RMS & PRU to WGX, RSG, SBM, AMI, DCN ( of all dogs) and a few promising explorers/developers PMY, RXL, GMD, BDC, KAI & DEG(out of it now). A handful of forgotten explorer/developer like BAT, MSR & few others. My latest additon is AIS which I think will do well.

All the best, and hope you join the WGX registry and start thinking about cookie wookie.