I wonder who the large buyer is. WGX must have gotten onto the radar of some fund/s, perhaps in view of its increased market cap and scale of production post the merger.
It is possibly the only one of the mid tier goldies up today. Given the recent run in the share price it looks fully valued, and as it will take some time to benefit from the merger and capex spend, I have taken the opportunity to sell half of my holding today. I expect the share price will drop back in the face of persistent market volatility and the harsh realities of actually trying to achieve strong operating margins once you factor in the full cost of production, including growth capex and exploration costs.
I would buy back my shares in a significant drop in the share price if I believed gold was going much higher near term. My expecation is that the price of gold will stay above USD2000/ounce but will retreat later in the year if the US goes into a recession and most asset prices decline, after which there could be another run in the gold price on the back of Fed/govt stimulus. Outside of the US, the world generally is not doing so well, especially China which is the largest or second largest buyer of gold, and jewelry/investment demand there is down from its peak. We are relying on continued high central bank purchases to prop up the gold price, and that seems to be falling off its peak with China not adding to its gold reserves while Russia having been a seller to help fund its imports.
GLA
loki (WGX to $4.00 in 2026?)
WGX Price at posting:
$2.85 Sentiment: None Disclosure: Held
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