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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: marcos who wrote (59027)	4/23/2008 3:57:02 AM
From: Amark$p	Read Replies (3) \| Respond to of 78421

WGI-fuel = 25%, 12/13/07 news release "The increase in cost of sales from previous estimates is due to current higher fuel costs as well as increased royalty costs based on the current higher gold price. Fuel costs comprise approximately 25% of the cost of sales." Cash Costs forecast to be $410-$430 on 3/10/08, so let's give base case at $425. Oil was $100 on 3/10/08 and $120 now (20% increase). Thus, under base case $425, fuel = $106.25 The fuel increase of 20% adds $21.25 to cash costs thus $446.25 would be new WGI cash cost at $120/oil. One thing I cannot figure out is why you think fuel costs would rise by trucks driving slower. Driving slower should improve fuel efficiency... "having to drive slow and put on an extra shift, this alone ups fuel costs" FWIW, diesel appears to have gone from $3.50 to $4.20 which is also 20% increase. tonto.eia.doe.gov

To: marcos who wrote (59027)	4/23/2008 7:51:06 AM
From: ogi	Read Replies (1) \| Respond to of 78421

One thing that is a certainty, operating any mine is a difficult and frequently problematic business, not one I would care to tackle. I rarely own producers. I don't own WGI. I think one impediment to WGI 's future share price may be their intention to leverage Mesquite for acquisitions. If they stay in perpetual growth mode the stock well feel the additional burdens until they reach another milestone of growth. POG will be a big determinant, if it rises back above 1000 in the near future (6 mos),as I expect it will that will give WGI a much better profit profile. There is no denying management brought Mesquite on line in a timely and cost efficient manner. Talked to my tire guys recently when retreading my tired chariot, got the impression the industry is starting to deal with the lack of industrial output. Cheers, Ogi