Looking at the cash flow they had $7m~ cash plus $3m~ shares which will last about 2-3 quarters at the current burn.
The assets have to be worth a lot more than the market cap of $77m~ on the open market in a A$1,650 gold price environment.
MLX have a dominant position on the register at 25% and they have plenty of cash plus a cash flow positive tin mine. WGR is a $20m investment to them in a $300m~ cap company that is probably undervalued also given the state of the market.
MLX have sold out of a satellite recently.
Debt financing for mine development is too risky at this point for the banks.
So 2 ways this can go;
# MLX put the company on the market
or
# a 1:3~ rights issue at 12c~ = $16m to progress further (or placement to sophisticateds)
I'll back the placement/rts option.
17.5c seems ridiculous but not if you will have all the stock you want at 12c~ in 6 months.
Wild card is gold blasting through $2,000 that would bring the punters back to WGR.
Appreciate others thoughts.
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Last
3.2¢ |
Change
0.000(0.00%) |
Mkt cap ! $5.451M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 33333 | 3.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
3.2¢ | 364498 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 33333 | 0.030 |
2 | 205070 | 0.029 |
1 | 17900 | 0.028 |
3 | 285305 | 0.026 |
3 | 620000 | 0.025 |
Price($) | Vol. | No. |
---|---|---|
0.032 | 364498 | 2 |
0.033 | 100666 | 1 |
0.034 | 110191 | 1 |
0.035 | 70000 | 1 |
0.036 | 200000 | 1 |
Last trade - 10.09am 14/10/2024 (20 minute delay) ? |
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