WGX, HMLO, ODV, NTH
West Australian gold miner Westgold Resources aka WGX has not been trading well of late, and now we find out why. WGX has made a major downward revision in its FY25 (Jul 24 to Jun 25) guidance. Problems with the ramp up of production at both Beta Hunt and Bluebird-South Junction mines means they hap decreased production guidance by 70k oz Au while increasing AISC by $300-400/oz Au.
They try to reassure investors by saying that the changes are 'predominantly due to engineering, not mineral resource issues', and that production should meet the originally planned levels in Q4 (Apr-Jun). I would say that if you are a fan of the company this should be a good time to add to your holdings. If they have indeed solved those problems, that and the expected increase in the PoG over the year should lead to a material increase in WGX's share price. (And keep in mind that the PoG in $A is over $4500/oz and is expected to exceed $A5000 this year.)
Message 35009009
Until recently, as you could tell by the name, Heml Explorers aka HMLO has been focused on exploring for PMs in that part of Ontario. They all changed late last year when they picked up extensive landholdings prospective for gold. They now have a new name, Rocky Shore Gold, and a new President and CEO whose chief achievement has been building up Rockcliff Metals and selling it to Hudbay in 2023.
The name change will take effect on Feb. 10.
finance.yahoo.com
Osisko Development aka ODV is busy developing its Cariboo gold mine in central BC, extracting a bulk sample, optimizing the FBS for completion Q2, and waiting for permits to begin construction H2. They have also been doing some drilling at a historic mine which they are calling the Quesnel River Mine, of QR Mine prospect, which is located on a separate property about 50 km south of Cariboo and contiguous with III's producing Mt. Polley mine.
Unfortunately, the core from historical drilling is lost, but a limited drill programme in and around the old pit has come up with intersects like 13.61 g/t Au over 4.15m and 5.98 g/t Au over 11.40m. This intercepts validate a historic dataset, which together with new geophysics and mapping and sampling will be used to design a future more extensive drill programme.
Message 35009074
Nord Precious Metlas aka NTH announced the latest stage of development of mineral processing capacity at their Castle Mine property near Cobalt, Ontario, where the next step will be to process existing waste rock piles for mineral content and then use the residue to upgrade the mine. To that end, they now have developed water treatment infrastructure necessary to process dewatering and process waters.
Message 35009262
Saville opines that even though gold and silver stocks have both achieved upside breakouts, he expects them to pull back in the coming weeks because the fundamental and market sentiment backdrops in the PM markets suggest that the ongoing correction within a bull market is not complete. (What a time to be a financial prognosticator!) |
