Looking at the fundamentals, people react to a falling gold price, usually in US dollars. In fact, in Australian dollars, the gold price has stayed around $2,600 the whole time. In fact last few days it has risen to about A$2,650. So in terms of cash flow the "fall" is a false alarm. Its not falling for any Oz miner, for Oz shareholders. The US fall has not affected the bottom line in itself. The latest hedging contracts have been at a much higher price than the old ones. So at these prices it is a screaming buy in comparison to recent prices. Does anybody have money to buy though? That might be the problem. My little SMSF is cashed up to the plimsoll line ATM. Normally I would head to Northern Mining or similar, in this situation but there are situations which could develop, but have not yet, where this is a plus.
WGX Price at posting:
$1.31 Sentiment: Buy Disclosure: Held
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