WM, TUO, WGX, OGC
With the stock trading at less than 10% of the price of what it traded at a few years ago, this is a important year for Wallbridge Mining aka WM as they attempt to turn things around. They have released a PR announced they are cashed up -- over $20M on hand -- and this year plan to carry out a three-pronged programme on their Quebec gold projects.
First up will be the release of an updated PEA for the flagship Fenelon project, where they have already defined a large resource containing 4M oz Au. It will released before the end of Q1. WM hints they might be switching to a staged approach to development to lower initial capex.
Next up, the focus of this year's exploration will be to expand the nearby Martiniere deposit, which already has a resource of more than 1.3M oz Au. WM is planning for 10-15 km of drilling this year at Mariniere.
Finally, WM will also carry out 3-5 km of drilling at various regional targets on their extensive landholding in the Detour gold trend.
IMO the exit plan for WM is to sell off rather than build a mine on these gold properties. I am hoping better numbers from the updated PEA plus the expected rise through the year in the PoG tempts a suitor into serious wooing.
Message 34991650
Another stock that is way down from its high is Teuton Resources aka TUO, who own all or part of a large package of properties in BC's Golden Triangle. Today TUO announced what I assume is another step in the preparations to sell their share of the JV on the Treaty Creek project by announcing they are preparing to spin out into a separate company their Big Gold, Eskay Rift, Four J’s, Tennyson, Pearson, Catspaw and Leduc Silver properties, now collectively dubbed Luxor.
In addition, TUO will provide SpinCo with $1.9M cash, and have applied to list it separately on the the CSE. Each TUO shareholder at the time of the spinout will receive 1/3 of a share of SpinCo. Even after the spinout Teuton will still have a large package of properties in the Golden Triangle, which I assume will become the focus of TUO after the SpinCo is spun out and the Treaty Creek JV share sold off.
Message 34993104
West Australian gold miner Westgold Resources aka WGX released its Q2 results, covering last October to December. This was their full full quarter including the assets they acquired when they merged with KRR, so as expected production was substantially higher at 80866 oz Au at a cash cost of $A2535/oz. At first glance those costs seem high, but then you notice that the average sale price for that gold was over $A4000/oz. As a result, WGX achieved they call 'net mine cashflow' of $45M and increased their cash stash to $152M.
All in all, it was a decent quarter, with costs expected to decrease into 2025, especially after Great Fingall begins production Q2.
WGX also offered an explanation as to why they surprised, or even shocked, the market by drawing down $50M on their credit line even though they seem to be in good financial shape with all that cash on hand. Apparently it was 'to balance the working capital requirements of our much larger business'. Okay....
Message 34993133
FWIW, Scotia issued a new analyst report on OceanaGold aka OGC after site visits to their Waihi and Macraes production areas in New Zealand. At Macraes, they highlighted the ongoing production improvements, the potential to extend mine life, and further exploration upside that could extend it further. At Waihi, Scotia highlighted improving efficiency of mining at Waihi underground, plus the upside from the development of the WKP deposit plus exploration upside. Scotia maintained OGC at Sector Outperform with an increased target of $6.25. |
