Yeah it comes back to asset quality, cash flow, management reputation and technical risk IMO.
In the past 3 years WGX has raised over $100m equity, sold its Higginsville and South Kal ops, spun off its NT assets (CST) and liquidated over $100m of investments. What do they have to show for these funds? Some progress on Big Bell but really not much for the assets they lost and equity raised - it’s been a cash inferno.
Other than Big Bell and arguably the Starlight lode at Fortnum the rest of their deposits are pissy little low grade sub 200koz size which barely repay the cash back that it costs to open them up.
Management has done nothing to impress, assets have underperformed, big bell... still going?? Look at the below they were meant to be fully ramped up at 1mtpa late last year, it’s nowhere near that, 12 months later.
Its an extremely challenging thing they’re doing with a sub-level cave in an area known to have unstable ground. If they can do it then this is hugely undervalued but not sure I’d have the trust in the mgmt team to execute, to be determined, I’ll certainly be watching for signs of success as there’s huge torque there.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)