Wgx - westgold resources limited

[shasta]

Since this has started trading today by way of an in specie distribution from MLX, it deserves it own thread.

Pure gold play, multiple producing projects, no debt, and previous quarter production totaled 65k/oz - approx 260k annualized and looking to nearly double this over next 2 years.

Presentation is a great read, also showing what assets MLX has left as no cross shareholdings between them.

http://stocknessmonster.com/news-item?S=MLX&E=ASX&N=790928

[Joshuatree]

Thanks shasta, pure play with no debt and great margins re A$500 oz; 15.4 mill oz resource. Trying to slowly extract myself from Goldies atm; just waiting for a Trump clanger to rattle things.Down to $1.67 on first day today ;re $500 mill mkt cap. 79% held by top 20.Am i right $100 mill cash?,Disappointing start for holders; Demerge has lost value atpit.

[shasta]

Cash from memory is around that figure, possibly bit more and small amount 150k/oz hedged at around A1650/oz.

A large royalty has ceased from one of the projects which will drive the AISC costs down further, the presentation shows the disparity in valuation with other mid tier goldies, and the fact they almost doubling production within the next 2 years with reducing costs is what caught my attention, WGX is my only gold exposure.

MLX has also suffered from the demerger at a time when the fundamentals are totally in there favour, large copper mine in production, tin mine in production with improving margins, and a huge long life Nickel/cobalt project awaiting development at a time with improving nickel prices and reducing supply.

Has the market got the values right, or is this an opportunity based on improving fundamentals for both WGX and MLX?

Will be selecting them both for the 2017 comp, will crunch some more numbers on them too.

[shasta]

Interesting movement yesterday up 18c to 190c, albeit on small volume, and given it's a pure gold play a 10 percent jump with no news/ann is intriguing.

One to watch in early trading today to see if can hold those gains, and whether any announcements are forthcoming.

Anticipation of a decent quarterly?

[shasta]

http://stocknessmonster.com/news-item?S=WGX&E=ASX&N=807471

Quarterly showing increase in gold production, costs under control, healthy margins and some useful drilling results, yet still under the radar.

[Joshuatree]

Some negative talk about Norregard appointed as director of ops. Seems he was involved in a few disasters in his last two companies; RED being one of them( i lost dough there too when the water issues weren't dealt with and the tailings wall collapse).

Ive taken a small position in AWV

[shasta]

WGX continues to move on no news, up 25c today to 225, had a great wee run albeit on it on modest volume.

No idea why such a big move, anyone else following?

[shasta]

WGX hit all time high of 236c today before closing at 232c, and with gold around A1600/oz still very healthy margins.

[shasta]

Toot toot 247c and powering on, didn't think it would re-rate so quickly...

http://stocknessmonster.com/news-item?S=WGX&E=ASX&N=809818

This ann came out yesterday, seems a win-win, WGX doesn't need the cash from an outright sale though, unless selling SKO to fast track the Rover project.

[shasta]

254c close today, seems no one else enjoying the run...

Don't think anyone else selected WGX in the comp either, with much more to come too, surely those using TA would've had this come across there radar some time ago?