re: gwalia gold turns to dust/excelsior
Rule 1 in receivership - past shareholders get ZERO usually
I would expect the tantalum assets to be sold off to an industrial minerals producer like Iluka, and the gold assets to be raffled off to the sharks in Perth. The pits are depleted and grade is dropping, and capex required to bring them into recover is too high. Bottom line is that they are crap old mines, and will only be fit for a spruike on a new IPO (and the shareholders coming into this will be baked as well in the long run).
Watch out - there are more skeletons in the hedge book closet. Lihir is also dodgy on its FX book and Oceana is overhedged as well (not too vulnerable though as reserves are properly stated).
I have NO idea why Aussie punters waste time on the local gold stocks as there are tons of quality unhedged ones overseas. Look at Goldcorp, Goldfields (SA), Newmont, Bueneventura, and Meridian Gold for large cap ideas. If you are going to invest in gold in Australia, do it through am exploration stock as at least management havent sold future upside down the river.
SGW Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
