Ann: CY 2018 Gold Production Guidance Update, page-12

Flaming

It is impossible to say how low the share price will go after the release of the expected v. poor quarterly to 31 March.

The market will note that some of the bad news is due to one off effects that should now be remedied or very soon be remedied. I am at a loss to understand what the impact might be of the 12 month toll treatment at the HGO plant on AISC - hopefully there is some guidance on that in the report - it could be good or bad, just depends.

Ramping up Murchison was always known to be a lengthy process - the fundies like Blackrock were willing to give them time to sort this out, but I suppose if costs do not come down then.......

I do worry about what the costs at the former SLR plant will look like - hopefully a lot better than what they achieved since WGX will ultimately be processing at a significantly higher ore grade, with the main step change occurring in 2020 when the Big Bell underground mine is fully operational. There could be high costs in the initial 1-2 years before then.

The half yearly report indicated that WGX had $59.7m in cash and cash equivalents. Add to that the $80m they raised via the sale of SKO means they had $140m to keep them afloat. I would expect that this would be down to around $100m by end March given capex/exploration and losses on some of their operations (SKO should have provided positive cashflow for the quarter).

I think its too early to see WGX going sub-$1.00. Depending on the extent of shorting they could easily get to around $1.20. Whether it would be a good buy at that level is unclear to me. But given my belief that the AUD POG is going higher by year end, there is likely to be some demand by fundies that are willing to try their luck here and that could give the share price a base for future recovery.

In other words, I have no idea.

loki (confusing, is it not?)