RE:The Newmont takeover bid for Newcrest has to help Wesdome One way or another this stock is not going to stay at 6 bucks for too long. Two and half years ago it was trading between 10 and 15 bucks based on the off-the-charts drill results at Kiena and the realization that getting to the honey pot starting at the 129 level was going to be a cash printing machine.
Now, after world wide procurement issues, the project was delayed for a year. It caused some financial strain and the company will probably issues some shares but in my opinion it will not be extensive.
Have the fundamentals really changed that much? Those grades are still there. The plan is still moving forward, albeit there were delays. WDO has all the equipment now and are moving the ramp down to the honey pot with a target of 12 months. If they need money they have deals in place to draw on it.
Like I've said before. Someone is going to get to the honey pot and 12 months is not a long time to get there.
As for the gold price I follow Alasdair McLeod from GoldMoney as I find his analysis of the precious metals markets are usually spot on. He says this down draft on the gold price is temporary as shorts are trying to close their positions due to the tight physical market and because the BRICS, Russia, China, and others are moving to a gold backed international currency exchange. The rest of the world has had enough of US hegemony. Even the Saudi's are going in and will accept payment for oil in other currencies. What does this all mean? Gold will go higher.
I'm in agreement, Woodporter. I think once this gets a little traction that WDO will go for the same kind of ride that happened 2.5 years ago.
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