Hey Loki, firstly, cheers for the link.
Straight off the bat though, Cookie states 'cash and liquid assets'.
The sale of the South Kal operations went through on the 29th of March (+ $80m in cash and shares). They ended the Dec Q with $31.6m. So... far as I can tell, the quarter saw a cash position decrease by $16.6m. If they burn through another $40m (cookie does explain that its spread over the next 14 months or so). That will leave them with liquidity of $55m. Of course they also have the gold pre-pay facility (its basically debt of around $28m). Which I find annoying when WGX publishes its E/V incorrectly.
You are probably right about why there was some support form buyers overseas, but... its breathtaking just how much cash WGX have burned through on their gold operations over the past 3 years or so.
I also like how in the presentation slide, it mentions 'margin' of 400-500 per ounce. Hmm.... depends on the quarter you pick I think! Anyway, I do think that if the Big bell hits targets, then WGX will do ok going forward, but... to date, WGX has not hit guidance very often, production wise.
Cookie does present ok. If WGX had RSGs management, it would be a core holding for me, but, not to be, however, if we see a bit more weakness in the POG in the near term, I may join you as a holder.
Surely WGX looks across at its successful peers (NST, EVN, RRL, SAR) and realizes that the key to strengthening the share price is consistent, reliable production. Its not like they don't have enough reserves or mine life. Its about consistency.
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