Sorry, but your comment about Red 5 being better value than GCY speaks volumes about your ability to value a company effectively.
You say red 5 is “only” 3 times more expensive as if that’s not significant lol. Compare WGX to RED as the market caps are relatively similar
RED EV - ~732 million WGX EV - ~500 million
RED still has debt risk, although cash flow in the next 6 months should see this paid off. WGX is in a much stronger position with 190+ million bucks in the kitty. WGX production guidance is also more than 25% higher than RED, with a similar cost profile ( although I’d expect WGX to outperform further due to conservative guidance).
My point is that I highly doubt Wayne would even take one look at merging with RED right now (especially at a premium) when his shares are inherently better value.
Now a bit of a comparison between RED and GCY. GCY will have the capacity to produce between 120k-140k at a similar cost profile to REDs midpoint guidance ($1900 AISC). RED is currently trading at an EV over 3.5 times higher than GCY, even if you lower that to 3 (to account for restart costs) I still think GCY as an investment makes more sense as it has the potential the be worth 60+% of whatever RED is trading at (based on production and cost estimates)
Not financial advice
WGX Price at posting:
$1.47 Sentiment: Hold Disclosure: Held
(20min delay)