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18/12/23
17:49
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Originally posted by fitnfam
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We have already seen them manipulating exploration UP to LIMIT CASH accumulation to around $25m a qtr.
Reminds me very much of BB and NST where grade was pushed to one side and processing was based on ensuring a consistent cash flow with either higher or lower grade stockpiled ore used depending on the gold price.
With most of the new stuff they are touching they have been re-working down old mines to maximise income.
Now we are seeing new grades from newer drives that will ultimately lift grade.
I keep watching the changes in surface stockpile grades/tons from year to year.
Slowly you are seeing an upgrade in the value of surface stocks grade wise.
.1 0r .2g/ ton says its all about optimising yield through plants.
Many may not understand that pumping 12g/ton ore through a mill results in poor yields until you drop the tons thru, if the ore cannot shed its load during the processing time.
Very much like making a cake THE PROCESSING BLEND is to maximise yield in the processing time and with the plant configuration available.
If plenty of free milling ore is in a feed then adding lower grade that requires deeper carbon leaching is processed for near enough free if the plants leaching capacity not otherwise being used..
SPR/GCY have mentioned their plant needing rework to handle the ore they have found to maximise yield which is why prior managers ignored initial indications of it due to then lack of funds.
There is much to be had from existing WGX processing plant over the next 10yrs
Much like the $8m pebble crusher installed last year to maintain through put at one site.
Now they have drilled a sugar hit there and grades around 12g/ton. ahead
I don't see WGX are processing constrained-there are easily future reasonable rationalisation options in around 2yrs IMHO with at least one larger company for any surplus potential and use of any surplus plant likely to be available then.
The existing mill ore feed will be optimised slowly over time as plant is fine tuned for a longer - term feed profile.
We are seeing a change from being a GOLDIE to being a company run to MAKE SOME REAL MONEY at a steady rate.
The big holders fronted for the Cap raising without a qualm when things were dicey for a reason.Some shareholders didn't from memory.
I believe it is called PROFIT.
Roll on a re-rating and I look forward to the future doubling of the existing market cap and then chats with RMS as they stagnate about mutual benefits to be had via merger/rationalisation of operations.
When things turn down as they always do and the shakeout that always occurs destroys a few companies then WGX will be one of the survivors and will be picking up expansion options as they appear with accrued CASH.
At the moment some non producers making nothing but announcements appearing to be worth a quarter or more of this producer currently stacking CASH at the rate of $90m + P.a.is.
DYOR+ DYODD Just my thoughts of course,its been a great ride so far although I did sell out totally at $1.80 to be elsewhere for a while as IMHO this is a VERY CALCULATED slow steady boil yet to build up its true momentum.
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"I keep watching the changes in surface stockpile grades/tons from year to year.
Slowly you are seeing an upgrade in the value of surface stocks grade wise."
Interesting observation by you .
"SPR/GCY have mentioned their plant needing rework to handle the ore they have found to maximise yield which is why prior managers ignored initial indications of it due to then lack of funds.'
Think the reason for re -jigging the Dalgaranga plant is because the newly discovered ore at Never Never has a higher silica content which takes longer to grind (hence need for a cyclone to shift oversize in a secondary circuit to a small ball mill) than the previous ore.
Last edited by
plough :
18/12/23