Ann: WGX Operational Update, page-12

@ravjna

There is no disaster here. Rain occurs in summer months. The problems have been rectified.

The second half forecast almost halfway through is for around 123,000 ounces at say $2,000 an ounce.

Assuming an average sale of price of $3,150 (well below current prices) that still leaves a tidy margin of $1,150 or gross profit of $141.5 million.

Subtract $75 million in capex and $10 million in administration/royalty costs would leave around $55 million cashflow for the half

If production is weighted towards second quarter than average margin would be higher given current prices.

Assuming drilling can replace current reserves this year we still have 2 million ounces of reserves alone.

Assuming a $1,250 margin on these reserves values WGX at $2.5 billion for their reserves alone.

This excludes cash, infrastructure and 6 million ounces of resources.

WGX market cap is currently half of that or valued at less than $500 a reserve ounce when margins are currently closer $1,300.

Assuming they meet their targets WGX is still very good value and will be rerated if it stays at this price into the ASX 200seeing further price upside.

GLTA/IMHO