News: WGX Westgold Resources To Buy Andy Well And Gnaweeda Gold Projects, page-3

Seems to me they paid a bit more than some other mob was going to pay.  Other mob (early Oct) was going to pay $10 mill.  WGX is paying 9 mill plus 6 mill in royalties.... so $15 mill.

Anyway, I bought some more at the auction today (80 cents).  Pretty soon the share price will be free!

Here is my thinking.  Last fin year was a mess.  But they did make a little money (a very little).  So if the price of gold goes up (it has and is) they should be a good buy.  They are currently priced like losing (big losing) mine(s) with no upside.  Their NTA is $1.12 (I think that is the price).  So they are trading as if they will never make money from mining.

Now, in their most recent presentations, they present themselves as a 350k oz per year producer at 1300 AISC.  So my calculator says (at $1800 AUD gold price) $500 per oz profit x 350000 = $175mill per year.  Their current market cap is $320 mill.

So, that tells the market is a fool or Cookie is a fool.  Would you pay $320 mill for a company that makes $175mill a year profit.

Now whenever this disconnect shows up there is some big info you are hearing.  But..... some 'insiders' with all the info bought $20 mill at 90 cents.  Cookie himself stumped in $400k at 89 cents.  So my 80 cent buy is as a sucker fish slurping on the fins or Mr Sophisticated Insider and the Cookie Monster.

(dont tell my wife I bought more)