Hey Loki,
I think you are being polite about the report.
Plus, I thoroughly dislike how they explain their cash position.
No clear explanation of where their capex has gone or whether they have sold their $60m worth of NST shares...
March 30 saw the company sitting on $91.4m in cash and liquid assets, which I believe does include the $80m from NST, which completed on March 29, meaning, that until that sale went through, WGX had been sitting on just $10.4m at the end of the March quarter, which is insane.
Now we have a quarter where their AISC is supposedly, down from $1700 AUD to $1560 AUD, yet....
Their cash and liquid assets now sit at $56.5. But they produced 61k and sold at $1671, making just over $110 an ounce, or $6.7m. So... they burned through another $41.7m. Big Bell is not going to be fully up and running for another 18 months. They are potentially going to upgrade one of their plants plus other ventures like rail upgrades etc etc.... How is the market even valuing WGX at $600m???
@fbx258 - I know I am asking for their impossible, but just for interests sake (I do not plan to buy in), how low do you think the SP could really go?
I really do wonder why the market likes WGX so much, yet, they are barely producing more gold than RMS, yet its E/V is basically 2.5 times higher.
Gotta love investing in the gold sector
WGX Price at posting:
$1.56 Sentiment: Sell Disclosure: Not Held
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