jogo Sometimes I am right and sometimes wrong at a certain point...

jogo

Sometimes I am right and sometimes wrong at a certain point in time.

I do not think that WGX is another DCN at present and possibly not in the medium term. I actually think it has some potential so I look at it from time to time for a possible re-entry (have held WGX shares for extended periods 3-4 times in the last 5-6 years and did OK. I treated my WGX holding with a lot of caution given the poor track record (note the past asset sales and some CR needed to feed the beast).

Last year's performance was again poor and if you factor in all the cash outflows and increase in accounts payable over the year, then I believe they did not add to their cash balance. Their AISC do not reflect how the cash balance may look at the end of the year due to capex. Operationally their mining costs have been high and they are basically run by Cookie no matter who else may be CEO or Chairman. IMO Cookie is responsible for filling the management positions where he places subservient clones (but I think their plant manager is probably OK).

Some years ago Cookie spent tens of millions to purchase their contract miner which was heavily in debt. Cookie claimed that if the contract miner went into administration then WGX would suffer operationally. However, I often wonder if this was some mates deal.

Depending on what else is available at a time when I think the gold price has bottomed, I may buy some WGX shares again. In the meantime I can wait to see if the performance is improving.

I am beginning to think that the gold price will continue to struggle for the rest of this year, and if the general stock market has a big correction then goldies will get hit. While I have a lot of cash I do have a useful amount in the goldies which would also suffer if I am correct about this market.

loki