This is a stock that has puzzled me for some years. It has great...

This is a stock that has puzzled me for some years. It has great potential, probably greater than many other medium sized producers in Oz, and I've gradually been increasing my holding ever since the SP dropped substantially below the $2.10 cap raising price.

As a comparison with other similar sized producers, SLR and GOR are perhaps good examples with annual production a bit below WGX, and AISC within the same ball park (SLR a bit higher, GOR a bit lower).

The WGX Market Cap is $576M, SLR $1,874M (3 times higher than WGX), and GOR $1,385M (2.4 times higher than WGX). All three companies are well cashed up and debt free (SLR $287M, WGX $189M, GOR $131M). That means that for roughly the same amount of gold production, investors are putting a very much higher value on the gold produced by SLR and GOR than on the gold produced by WGX.

WGX have had some significant board and management changes in recent months, which combined with the upgrades to plant and equipment provide some promising signs that the company has at last started to move towards realising that long-held potential.

Even at the current gold price WGX should be producing a healthy profit in 2022/23, and the 400,000 ounce target seems to at last be a realistic goal for 2024. However, most of the gold forecasters that I follow are predicting much higher gold prices within the next six months, so WGX might have a bonanza ride ahead for those patient holders who have stuck with it.

For the first time since I started investing in WGX, I now consider it to be a strong buy.

For the record, I hold shares in all three companies mentioned above.