The spot price makes even circuses look normal. There’s no shame in benefiting from high spot prices. All to the good of holders, if management can affect a plan that doesn’t wallpaper over the cracks. One needs prudence in times of high prices, because when a reversal happens, many companies are exposed as flabby and wasteful.
For what it’s worth, the strategy of spending big should bear fruit solely on the back of the spot price. I suppose I commented because I hate WB’s surfy, casual approach. He hasn’t earned the right to be smug, as I see it. Humility would do him wonders. It’s not the first misstep he’s made, but as I’ve noted, who cares what I say!?
I prefer the steps and stairs method of building a company. Guido Staltari from SAR taught RF about doing what it says in the tin. The notion isn’t new and has been taken up by others, but it’s that simple. There’s no need to be the big man, if you ain’t got it. When you get the company growing right, share price and respect will follow. Front running an established good operation leads to upset and egg on one’s face.
Many dislike RF, but no matter his perceived faults, he’s a top operator. WB needs to bed in the acquisition before producing all these ‘ounces’! He needs to give himself time to set out a plan which focuses on building the actual WGX business, not pretending it’s merely bolt on business and away we go.
12 months will do all Aussie gold companies so much good we’ll all be laughing to the bank, hopefully! Your investment is safe, but it’s the opportunity cost as you note, as WB repairs the unnecessary damage caused by overconfidence.
I’m telling you nothing you don’t already know. I’ll keenly follow your imminent analysis.
WGX Price at posting:
$2.26 Sentiment: None Disclosure: Not Held
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