Legal, cmon... you take everything that WGX provides to the market at face value???
This key statement alone is incredibly vague... they need to add a further 130,000 ounce p.a to achieve this taget. Yet... they are currently now begining studies on expanding their plants... what is the chances of them totally pivoting to look at expanding current plants instead of securing a brand new one down the road...?
You can drive a 100t truck through this wording: Firstly lets be 1000% clear. Fender is not 'new production'. The 30k has been slowly developed over the past 12 months! What can be accelerated.... its about to be produced from?
Bluebird is already in production! Started a few months ago. Approx 25-30k p.a. So they now plan to add 20-25k...
Bryah, they hope to process a massive 100kt p.a. At current grades, that will add 6k p.a Hmm.... Fender - already in development... will add approx 25-30k p.a.
Total to be added so far... 51-65k p.a. ounces. Their current production rate is just over 250k p.a (though they keep saying 270k+). Even then... that is only 85-99k below what they need to get close to 400k p.a.
[ just to be fair, WGX do mention other developments that could occur into the future, but... they are way off! Plus, adding reserves does not necessarily mean more ounces in production, it just means more ounces ]
Plus... back in Nov 2021 (yeah, just 4 months ago), WGX was professing to target 300k p.a.... from internal sources... ok. So.. a further 100k has just magically appeared viable? WGX corp update Nov 2021
Perhaps I am being too scathing... WGX has to play the game.... They would obviously not want to tell the market they are gunning for GCY. Though when I read this slide, I cannot help but be scornful.... free cash flow... what free cashflow?? WGX have never ended a year with its cash position increased, except... when it did capital raisings or assets sales. It's that simple.
And what is this.... 'funding key growth' without reliance on internal cashflow!!! That is not a strenght, its bloody shareholder dilution!
In the end... WGX make it pretty clear that this 400k target, is only going to achieve with.....
WGX is just lucky that gold continues to hold at such high levels, otherwise... it really would be RSG 2.0.
WGX Price at posting:
$2.13 Sentiment: Hold Disclosure: Held
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