Reads well if nothing else. No long tirade of why MGV is failed company. Just a clear succinct reason for the offer and why to accept. WGX is arguably the most leveraged play on the ASX to the price of gold (for a small/mid tier producer). Less than 6 weeks and WGX will be 100% unhedged to POG, unlike all its peers, except GOR I suppose, but... ouch, they just announced some serious operational issues. IF gold moves higher, WGX may see a similar outcome to what BRB had, which saw their premium rise far about the initial offer price. Still could be other parties wanting to bid etc, but... I am just looking at WGXs offer.
Right now the offer is about $0252 cents a share for MGV holders. Not much of a premium, but... then it does not take into account that for me at least, WGX script is highly undervalued. By perhaps 50% to its peers. So.... all things being equal, the offer is closer to $0.40 if WGX re-rates to fair value. All speculation on my part.
WGX Price at posting:
$1.35 Sentiment: Hold Disclosure: Held
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