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grubarura

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14/12/24

08:46

Post #: 77046910
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Originally posted by speculator101: ↑

Another solid step, though it's a shame that they could not get the approval required sooner than Jan/Feb. It will be interesting to see whether they can squeeze some of the ore into FY25 (they are not saying that, but... the open pit is not that big, so pre-stripping should not be large).

If they max out the deal, 50kt per month over two years will see they buy just over 150,000 ounces, before recovery (though the recovery rate will be very high). Perhaps 70k p.a recovered. To put this in context, NMG will almost be producing more ounces than MEK in it's first 2 years of production combined. With zero capital outlay. The upside is clear though, with NMG not going to stop drilling, this deal could extend for many years to come, though most likely it will turn to U/G mining (or perhaps an enlarged cutback open pit).

Though the exact terms are still to come, NMG/WGX continue to show maturity in a sector where clearly, it's hard to get a deal across the line, which in the end usually benefits no-one. Hopefully with the options being converted and perhaps a small payment by WGX upfront, NMG can step up their drilling in FY25 (it's win/win for all stakeholders).

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It looks market for both partners does not understand the importance and benefits of this deal

WGX Price at posting: $2.98 Sentiment: Buy Disclosure: Not Held
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Last $2.61		Change -0.010(0.38%)		Mkt cap ! $2.457B

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$2.64	$2.65	$2.59	$4.865M	1.860M

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