@Jonnyash My understanding is their free cashflow figures are misleading for the September quarter, due primarily to the 16,000oz of unsold bullion.
Why I think they will turn this around after two lean quarters:
*The growth capex is forecasted to continue it's trend lower which will hopefully push AIC back below $2000.
*The rising hedge-book's average price per ounce should help cashflow (45,000 oz hedged at over $2500 by GCY added to WGX hedge-book).
*There's still plenty of meat left on the bones of their 3 most prominent mines therefor grades should logically continue to trend upwards which will help keep future costs more stabile, whilst adding more ounces to production.
*GCY has a very cost effective processing plant. Without the impairment cost of 80 million last FY, GCY would have made a 36 million dollars profit.
*GCY will add plenty to the bottom line of WGX, especially when considering the higher grade ore mined in the CUE mine district filling GCY's processing plant.
*GCY's 48 million in tax credits should help with NPAT in the short term.
Of course with WGX there is always an element of once bittern twice shy. I don't blame you or anyone else for feeling jaded with this company. After watching their presentation today, I was shocked that I was the only one to ask a question. The lack of genuine interest, especially during M&A activity, proves to me that WGX still has so much work to do to improve it's tainted image. Still really happy that they at least put the effort into presenting their results to shareholders. It's another example of them beginning to head in the right direction.
DYOR GLTAH
WGX Price at posting:
$1.93 Sentiment: Buy Disclosure: Held
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