Hey Desert,while I understand your frustration, WB took the...

Hey Desert,
while I understand your frustration, WB took the reigns of a company that has basically let the market down for years.... never hit guidance, never made any profit etc. Over promised and underdelivered. As I understand it, the board made it clear that WB has to turn things around before making any sort of corporate moves (though yes, of course, WGX not throwing $20-40m to take a 19.99% stake in SPR/GCY while it was being recapitalized, was surely very short sighted by the board.... WB likely wanted to do something, but when your hands are tied....

WGX I believe, does have the luxury of being patient, due to all their internal growth options. Yet, to grow beyond a mid tier to... a large mid tier (who knows what the exact term might be), WGX will have to buy something that either really high grades one of the current plants, or... a project that add ounces quickly. I don't have a problem with WGX aiming for 300k p.a and just creating a large amount of free cashflow, as long as the LOM plans keep extending and costs stay well below spot, makes me happy enough, because... there really are very few successful gold producers in W.A. Lot's that have lofty goals, but how many consistently hit targets..?

I do think there are some viable options for acquisitions, with some likely not overly costly to WGX, but... there is risk in buying any asset, as the owner almost always over estimates the grades, ounces, costs etc. RMS has had a mixed bag of acquisitions with some over performing, others... others underperforming (grade, tonnes ounces).

It will be interesting to see if WGX provides a production update early in Oct. Perhaps with a really solid quarterly and cash build enabling WGX to have a $200m plus cash balance, and... announce a Dividend, they will move soon after, sort of like RMS playbook.