Market read the move correctly and pushed the SP of WGX 2.2% north. Let's put it in perspective. I think it was a smart move because $20m in cash gives WGX stronger balance sheet and more freedom to refine or expand their current operations eg explorations and lowerng ASIC. 252000 oz Gold in the ground sold isn't going to be an issue. Plant could be the main issue but again it wasn't working to full capacity. Hence, the sale. I think the winning part for WGX is that 75% of the sales proceeds are shares in NST. Market views it, rightly do, very positively. Northern Star's gain will also translate into WGX's gain. Simple math. Whether $80m was adequate figure for the sale that I wouldn't know. You need someone with detailed info to do gold stock evaluation correctly. WGX is literally, if not technically, a debt free company. Compare this stock many other gold stocks including BDR with debt twice the size of its market capitalization, and see what I mean. WGX is a great buy at today's price imo.
WGX Price at posting:
$1.60 Sentiment: Buy Disclosure: Held
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