Spec
It is very nice to see the share price run - looks like its institutional buyers given the high volume traded today in a generally down market.
I was not happy with the cash build this quarter - it seemed somewhat manufactured, but I get that there was needed spend on growth capital (yeah is that not always the case with WGX and most other miners). Big Bell may be delivering lots of ore but the last feasibility study showed a pretty low NPV (at a lower gold price). Rising costs are eating into the margins of our goldies.
One thing to note in the merger documents put out in April is that the net $160m the new mergedCo is supposed to have was not cash/bullion but "liquidity", which includes the $100m of undrawn finance that WGX procured. Actual net cash post merger may only be around $60-80m, or less. How much of that will be needed for the expanded company in the near term is unclear, and there are few real synergies to save $sss from the merger.
Like other goldie bugs, I live on hopium that WGX can in fact improve its operating margins once some of its current planned capex spend has been completed.
GL
loki
Ann: Westgold and Karora Complete Merger, page-9
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Last
$2.98 |
Change
0.250(9.16%) |
Mkt cap ! $2.810B | |||
| Open | High | Low | Value | Volume |
| $2.75 | $2.99 | $2.73 | $24.13M | 8.307M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 15089 | $2.96 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.98 | 145500 | 3 |
View Market Depth
| Last trade - 16.10pm 12/08/2024 (20 minute delay) ? |
| WGX (ASX) Chart |