All in costs of $2200 - 2400/ounce for 2022/23 is too high for the market to stomach in an environment of rising costs. At the current AUD POG and hedge prices leaves little, if any, profit on the table for shareholders.
However, if the are going to draw down ore stockpiles and save on some mining costs, then there is the possibility their cash balance could grow.
WGX is a high risk play on a higher gold.
Given their current strong cash balance (thanks to the previous capital raising), the company is not under any financial stress to survive, especially since capex has been forecast at $60m versus the $240m spent in 2021/22.
I bought a few shares at $1.02 in the hope of benefitting from a higher gold price, but even if we get that there is always the potential for costs increases to eliminate gold price gains.
GLA.
loki
WGX Price at posting:
97.0¢ Sentiment: None Disclosure: Held
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