It all comes down to cost of production and market confidence....

It all comes down to cost of production and market confidence. The former has tended to be far too high and, for that reason, the latter has tended to be very very low.

For me, this is a bit like Ramelius in 2015 when I was buying it for 10 cents. Cost of production had gone up. A ball mill failure hadn't helped. The company didn't seem to have a credible plan. Market confidence had plummeted.

By mid 2015 the signs were strong that the cost issues were being resolved and that company management had focussed on a credible plan - but a lot of people had lost a lot of money and market confidence stayed low, keeping the share price depressed. It was a great buying opportunity and my only regret is that I didn't buy more and hold them longer.

WMX has struggled with high costs of production and it only stayed afloat by running up debt and raising more cash from shareholders. A lot of shareholders have been understandably very unhappy and market confidence has eroded away for a long time.

However, they now seem to have a credible plan and a string of consistently good exploration results. Debt levels are reducing and the high gold price has allowed them to become profitable. If they can keep lowering their production costs, their two stage plan is likely to make WMX an extremely successful operation. The SP will look a whole lot better as soon as the market gains confidence that the plan is working.

Cheers

Dave