WGX offers very good value for money in my view - certainly compared to other gold stocks.
1. It has double the reserves of RMS and SLR but significantly lower Enterprise Value. 2. No hedging holding back cash generation 3. An organic pathway to 300,000 ounces in the next financial year 4. Circa 6 million ounces of measured and indicated resources 5. 4 million tonnes of milling capacity 6. Significant brownfield exploration upside 7. Will soon be knocking on the door of the ASX 200 which will draw in the institutions.
I like how management knocked out the smaller mines from the reserves statement. It took the gloss off the growth in reserves at the producing pits but shows they are being honest with what they have.
I thought Wayne's presentation was excellent.
I can see the share price climbing to $2.50 to $3.00 over the next twelve months provided the gold price stays where it is and they grow cash by around $25 million a quarter throughout the year.
GLTA/IMHO
WGX Price at posting:
$1.82 Sentiment: Buy Disclosure: Held
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