For the record I have never stated that Westgold mines are duds but I will come back to this point … my comments were based on Wayne’s lower ounces at greater margins strategy that at this point haven’t been achieved … it’s resulted in lower ounces at lower margins. ( in a rising gold price space )
To answer your question regarding Ramelius, I would imagine that the team at RMS (like other corporates ) run the ruler over multiple targets and follow the story looking for an opportunity and entry … in the case of Westgold, my opinion is nearology, consolidation of the area rather than maybe the best quality mining assets but potentially some good future targets. It would give them closer milling capacity for Musgrave ore as well camp facilities in Cue, as well as other infrastructure, workshops, stores etc, leaving Mt Magnet mill for expansion of those assets, Eridanus etc. Other than that it’s probably ego. Just my thoughts. At the end of the day it was essentially been reported as a low ball approach ( everyone is looking for a bargain ) , it could also been corporate manoeuvring given the Karora deal involved both companies ie get WGX cheap and have a free run at Karora … who really knows.
Interesting you mentioned PC, my view was he was more like a gold scrap metal dealer than a miner, picking up assets cheap, selling some on to where they better fitted for a profit and retaining the ones with no interest … essentially this formed Westgold.
This probably explains Westgold assets are at the bottom end of quality tier, lower grade underground’s, old mills not capable of nameplate, multiple smaller mines, mills and camps remotely located from each other … the majority of there mined ore is road transported to mills .. in Big Bell case between 60 - 125km, costly with further downside with recoveries of lower grade ores … to me the whole operation is a little clumsy and inefficient.
WB was a director since Feb 2020 so he has been contributing a little longer than some may want to remember.
Do I think WGX has a future ? … Yes, Do I think they are the best opportunity at present ? … No. Just my opinion. Best of luck.
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