So... if the sale was a good deal, then why is the share price struggling...?
NST are buying it.. because they have gold resources nearby, fair enough, but... as others have pointed out, WGX has not been able to make money from the plant. That to me is perhaps what some are looking when the whole point of the WGX spinoff was that it grabbed cheap projects and was to reinvigorate them... um... selling them off seems like an admission that they cannot do, what they started out to do.
WGX has raised $68m back in Nov, sold $9m worth of assets to S2R, then sold $80m to NST.
Total - $157m! In just 3 months. Yet the stock is struggling..... capex will continue to be high for, honestly, who knows... years? (bet the Indo investor is grumps with the stock price down over 20%).
WGX has its place as a very good option on a much higher AUD gold price, but... its impressive just how much capital has been thrown into all their projects.
Is it hitting yearly lows right now?
WGX Price at posting:
$1.47 Sentiment: Hold Disclosure: Not Held
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