Hey Joel,It was an interesting read to say the least.I cannot...

Hey Joel,
It was an interesting read to say the least.
I cannot even wonder why they spouted the '24,000 ounces in August' update.... when the quarterly overall was average.
It means that of the 66k produced, 36.3% of the total ounces, the other two months were lower... so they cherry picked the one good month, to... I can only assume, boost/strengthen their share price in relation to the GCY offer.

The irony is now GCY's sub par quarterly, was still cash flow positive unlike WGX! So... GCY, a company who potentially, will be swallowed up by WGX and see its shareholders get approx 15% of its shares, made more money.... The playing field just got a lot more even... which I think will only force WGX to increase its offer for GCY.

For what it's worth, whilst the AISC was higher than planned, I am ok with their production rate of 66k, that equates to approx 264k annually. Pretty close to guidance (well... close compared to recent years!). They do mention that, it was actually their highest quarterly production rate, ever... The trend... is indeed going up, but.. still bumpy! (A WGX trait).

Capex was particularly high, which... contradicts all the presentations that have been harping on about capex now reducing. Though I think it will reduce... I note, that they did actually see their U/G operations start to ramp up in Sept... which explains the large unsold bullion. BUT... that also shows that July must have been a very poor month....

I think WGX has sort of shot themselves in the foot, by harping on about GCY having planned to spend large amounts on stripping and non-sustaining capex, and then themselves doing exactly that! Cash/bullion position reduced by $18m.

I think above all, whilst WGX is actually starting to steady itself, the benefits of GCY & and its plant will be a major catalyst if they are able to secure. Cash costs and AISC will reduce and production will increase. WGX will potentially become a 350k+ p.a producer, with an AISC under $1500 AUD. All with reduced capex going forward.

The WGX board could have saved everyone a lot of trouble, and just offered a higher price, and they would likely almost have the business by now.

Amazing WGX still only spends $5m a quarter on exploration. Hopefully this will start to change. Cheap ounces likely abound on all their acreage/brown field projects.