Good question - it depends on a range of factors. I assume (and hope) the 60m options will not get exercised in June 2019.
If I assume AISC/ounce $1280, ongoing admin is say $10m pa (I have not checked if that is the case) and ongoing annual capex is around $40m, then simplistically.
1) at $AUD1800 gold I can see the share price at around $1.90, perhaps a bit higher if you get price earnings multiple expansion;
2) at AUD200 gold the share price could be around $2.90.
The share price is a fluid thing depending on market sentiment and actual performance, so as a 300k ounce pa mid tier producer, a 10 year LOM production profile and scope to pay a dividend, it could go higher at those two lgold price evels. They have previously paid a dividend and it would be nice to get some again.
Still about 7-8 months to go before their large underground gold mine gets optimised, and when that does happen AISC should drop as production goes up.
Over time there could be some surprising upside from drilling success - an increase in ore milling grade would both increase production and lower AISC, thereby increasing net cashflow.
It would be interesting to know what the analysts say about the report and if they upgrade WGX.
There seems to be a largish seller wanting to get out/reduce around the $1.37 level.
loki (but these are just dreams at present - tomorrow we could wake up in cold sweat watching things going down the plug hole once again with WGX.)
WGX Price at posting:
$1.36 Sentiment: None Disclosure: Held
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