Ann: Q3, FY24 Production Update, page-66

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wassa

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07/04/24

12:50

Post #: 73226234
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Originally posted by kgtom: ↑

Last full report WGX complained about Covid impacting production. I said at that time, not a valid excuse anymore. Half a strike.

Then a few weeks ago, WGX come out and tell us about rain events, Fair enough, BUT, they say, 'Annual guidance maintained'. Now whilst it may have possible to get to production guidance, there was no way they could get to their cost guidance. Another half a strike. Total Strike 1.

Then just one month later they reduce guidance by more than 10%. Strike 2. I sold half my holdings soon after opening. Will see as to when/if I return.

The only way production guidance could have been maintained if they mirror reversed first half, 63k & 58k to 58k & 63ks second half. As it is it appears second half will be 52k and about 50kozs.

The only good news of all this is that the gold is still in the ground, and when it comes to sell, it will possibly/probably be at a higher price.

Another point. I take note of weekly gold price. In the DecQ I had a weekly average of A$3051 and WGX sold for $3041. Close enough. But did notice two other unhedged stocks, PNR for example, sold above my average. This Qtr I had an av. price of $3169, yet WGX sold for $3137. Interesting to see what the others received.

One final point. Even though the quality posts on HC have improved tremendously in the 27y I've been reading, I read and post a lot less .But when I do, I mainly look for negatives that I may have overlooked and appreciate it when they have been pointed out. Similarly, if in my research I find something negative I will often post this and maybe repeat or explain it once or twice more then I leave the stock alone. (With one exception). When someone consistently posts negatively about a stock, particularly when the price is going up, It's hard to not think as to why he/she is posting

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As a comparison Gold Road also announced gold sales at $3137 / oz … they are 100% unhedged as well.

Fwiw my own forward sales expectations were between $3150 - $3170. As a holder of PNR hoping they can squeeze a better price again.

Last edited by wassa: 07/04/24

WGX Price at posting: $2.28 Sentiment: None Disclosure: Held
3 Upvote

0 Great analysis

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