WGX - Valuation Analysis August 2020, page-2

Hey Brian,

as always, cheers for the analysis. Without doubt, WGX is very undervalued... except that it deserves to be due to its past performance.

Not sure if you saw, but an interesting report was posted on the RMS threads by @Forsite
Taylor RMS report - AISC analysis

I found it extremely interesting, particularly in regards to the AISC metrics compared to market cap.

The report does imply that, WGX has a lot of room to move... on the assumption it finally starts meeting its production guidance... (not a forgone conclusion!).

I note you discuss declining grades by most producers. Do you have a table supporting that? Perhaps Yr on Yr, and Q on Q?
As I feel both SLR and RMS, for example, have had their grades increasing for the past few years. Or are you talking about the big end of town?

A shame WGX management sold so early on with MGV. The extra $0.15 a share would have boosted their cash pile substantailly.

Anyway, WGX continues to be a laggard. Patience is required.