Cookie has funny ways to build friends. Not always obvious to...

First 7 Last

Share
Profile

Follow
arsenic

15,435 Posts.

1383

06/12/17

12:12

Post #: 29415164
Share

Originally posted by blackcastle ↑

I don't think WGX is directly paying a fee but rather the fee is coming out of 10% of new capital issued to GEAR. It's a capital raise at 1.88 a premium on the weighted average.

This raises a very good question though - obviously the market hasn't liked this as this is another let down by management - but the question is whether we, the shareholders, let management get off the hook a little too easy?

On the 18th September, the company advised that there adequate capital and incoming cash-flows t0 fund working capital and expansion required to meet it's guidance. The company has not advised of any material changes to this, then why the need to raise the capital? What materially changed that needed capital urgently for working capital for WGX and ACM.

I suspect the guidance of 310 to 340 ounces is at risk now - and the market hasn't been advised!!!!! I could sense it as the first quarter output came in at 66,000 ounces. Even on on a conservative production of 310 then the average run rate needed for the next 3 quarters needs to be 81,000 ounces. But the last quarter will need to be higher as production needs to be moving towards 100,000 ounces to meet guidance of the following year of 380 to 420. (note these guidance have re-iterated to the market twice). But if we were going to through more money to meet these guidance and then how does that change cost profile?

Additional to this we paid $30m in shares and cash for a contracting company, with no advice on how this will contribute to reduction in costs - it doesn't seem like it may not have been profitable and now the CR is supposed to assist it with working capital????

It would be better if management was transparent with information around guidance and material changes to forecasted eps, and stop making speculative investments unless their is clear understanding of what internal rate of return is generated and payback is going to be so we know how it's EBITDA accretive .

I have the feeling that PC is making company bigger by increasing the equity base (by diluting existing shareholders) as opposed to expanding the productivity of the underlying business.

#Frustrating

Expand

Cookie has funny ways to build friends.
Not always obvious to us. He want's the certain people on side so be it.
Later when it comes to horse trading we/you will understand why.
He created the whole of WGX from SFA (sweet Fanny Adams).

WGX Price at posting: $1.64 Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

Reply

Top Stories

KCC

Kincora to unlock key copper-gold province with three new licenses in NSW

RMX

Red Mountain Mining: record gold prices, two projects, two greenstone belts

ASX Market Open: Local bourse to dip -1.30% on back of soft US Friday session | 9 September 2024

WBC

Westpac appoints former Deutsche and Goldman Sachs executive to the top job

Week 36 Wrap: AI hype wave tested again; Oz per capita recession continues; AirTrunk’s $40B+ payday

First 7 Last

Add WGX (ASX) to my watchlist

(20min delay)
Last $2.88		Change -0.020(0.69%)		Mkt cap ! $2.716B

Open	High	Low	Value	Volume
$2.85	$2.94	$2.83	$21.38M	7.413M

Buyers (Bids)

No.	Vol.	Price($)
3	96607	$2.87

Sellers (Offers)

Price($)	Vol.	No.
$2.89	15765	1

View Market Depth

No.	Vol.	Price($)
2	5271	2.850
1	4986	2.840
3	6007	2.830
2	5258	2.820
1	5258	2.810

Price($)	Vol.	No.
2.900	712	1
2.910	4986	1
2.920	4986	1
2.930	64529	3
2.940	4986	1

Last trade - 16.10pm 06/09/2024 (20 minute delay)

WGX (ASX) Chart

Cookie has funny ways to build friends. Not always obvious to...

Kincora to unlock key copper-gold province with three new licenses in NSW

Red Mountain Mining: record gold prices, two projects, two greenstone belts

ASX Market Open: Local bourse to dip -1.30% on back of soft US Friday session | 9 September 2024

Westpac appoints former Deutsche and Goldman Sachs executive to the top job

Week 36 Wrap: AI hype wave tested again; Oz per capita recession continues; AirTrunk’s $40B+ payday

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Cookie has funny ways to build friends. Not always obvious to...

Top Stories

Kincora to unlock key copper-gold province with three new licenses in NSW

Red Mountain Mining: record gold prices, two projects, two greenstone belts

ASX Market Open: Local bourse to dip -1.30% on back of soft US Friday session | 9 September 2024

Westpac appoints former Deutsche and Goldman Sachs executive to the top job

Week 36 Wrap: AI hype wave tested again; Oz per capita recession continues; AirTrunk’s $40B+ payday

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News