Although those who participated in the cap raising at $2.10 might not agree at the moment, it does appear that in view of the severe tightening in capital markets in the last few weeks, the raising of an additional $100 million has proven to be something of a well-timed masterstroke by WGX.
The company is now well funded to follow through on its expansion plans, and with a forecast substantial increase in the gold price in the months ahead and a realistic prospect of an increase in production to 400K ounces by 2024, I believe that WGX's future looks more promising now than at any time in the past.
The investors who tipped in the $100M and who have hung on to their shares despite the fall in the SP might find that they actually made a good investment. $2.10 might look cheap by this time next year.
If anyone knows of a better value proposition gold stock than the cashed-up WGX, I would like to know what it is.
WGX Price at posting:
$1.17 Sentiment: Buy Disclosure: Held
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