I hold WGX and RMS so follow both closely. Was of the opinion that holding more RMS now while they are spewing out cash was preferable to WGX who are investing heavily in capital development. However, looks like WGX has outperformed the RMS share price.I don't think anyone expected WGX to counter the cash build of companies like RMS this year.
The problem with WGX though seems to be the issues that regularly flow through quarter on quarter which has seen poor production figures.
You do seem to ignore the fact that WGX are upgrading their assets as well as developing a new mine (Great Fingall). All this occurs as RMS loses a production hub in Edna May and although the Penny ore is massively profitable how quality are RMS assets when that is mined out?
Things could change very rapidly in the valuation of RMS and WGX over the next couple of years. Zeppy is a bit of a genius in making things happen though.
Also I think you're ignoring the fact that in gold booms it's most profitable to buy the borderline producers because they are the ones that see the biggest increases in profitability.
WGX Price at posting:
$2.67 Sentiment: Buy Disclosure: Held
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