GREY:GRFJF - Post by User
Comment by
Orwellon Sep 03, 2008 10:49pm
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Post# 15429605
RE: Problems with Open Pit, WGI
RE: Problems with Open Pit, WGISuccess in open pit is proportional to the price of gold, and how good management is at execution.
If the POG collapses for a short time, the company needs a good balance sheet, lines of credit, etc., and once again good management.
Expenses for WGI should be going down with the strength of dollar and decrease in oil price.
The market is currently factoring in a gold price collapse such that low grade producers will feel the pinch.
As mentioned once before, hedging can be a good thing, I would like to see more hedging in WGI for the next 6-12 months while the deflationary scenario plays out.
I'd hate to be a seller of WGI at these levels, I bought more today, but we still need the price of gold to behave.
WGI is really the only significant gold stock holding I have, if someone has a better bet in the sector let me know.
If POG is going south of $700, then none of us should hold any gold stocks.
But if POG can remain $700-800, then WGI is the easiest double from here.
O.