Hi Wassa, currently, WGX don't yet have enough U/G ore being produced to fill the mill, that is partly due to Paddy's being shut early this year, and... their mines like Great Fingall and Bluebird (expansion) have not yet been completed. So... cutting a deal with OAU makes perfect sense. What is the negative for WGX? The Bluebird plant can process soft oxide at higher rates, OAU has that ore, hence the deal. The hard ore from WGX assets has meant they cannot process a higher throughput. Simple as that.
Perhaps if you take a deep breath, and ponder what the original Bluebird plant was built to process (oxide ore), you would have more context to the current throughput challenges.
I continue to view WGX as being honest and upfront with the market. You disagree, fair enough.
@plough you are likely right about OAUs other assets, but for now.. they are not quantifiable, so hold very little value, especially when WGX arguably has just as prospective tenements/targets, so... better to focus on their own assets, except in the case of Crown, because the high grade is going to make good FCF in the near term, which is what both OAU and WGX are after.
Fair enough @loki01 you may well be right, but I view WGX as very undervalued, especially when the high POG is enabling them to fully fund the huge capex they are spending to enable their mines to be longer life, lower cost.
WGX Price at posting:
$2.79 Sentiment: Hold Disclosure: Held
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