WGX had JORC resources of 15,960 Koz, as at 4/9/17. At current SP, WGX is being priced as a high risk explorer and not as a producer while despite its 300+ Koz production, it is now in the lower quartile of valuation by EV for its production at $1264/oz. The AISC going forward is for $1325/oz. OK this is on the high side but still profitable.
The company had $56.5M cash+equivalents as at 30 June and $12.5M owed in the form of gold (10Koz priced at $1250/oz) and had an EV of $392M.
So, what has happened to devalue the company? Has a mine collapsed, has the gold price collapsed, have the resources been proven wrong? Have they blown out their cash expenditure?
WGX is not dependent on a single physical resource and has been developing resources over an extended area with multiple processing plants. It was only 4 months ago that the market priced the company at $1.60.
Until there is some light on why the SP is being savaged, I am not prepared to give any assessment.
WGX had JORC resources of 15,960 Koz, as at 4/9/17. At current...
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Last
$2.85 |
Change
0.010(0.35%) |
Mkt cap ! $2.527B | |||
| Open | High | Low | Value | Volume |
| $2.86 | $2.88 | $2.83 | $5.068M | 1.776M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 49644 | $2.84 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.85 | 104299 | 3 |
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| Last trade - 16.10pm 29/11/2024 (20 minute delay) ? |
| WGX (ASX) Chart |
