GREY:GRFJF - Post by User
Comment by
Bobbybaxon Feb 09, 2009 7:07pm
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Post# 15765173
RE: Cost going up, production guidance down
RE: Cost going up, production guidance downWGI costs change so much between quarters because they place no value on inventory.
Cost/ounce = Total production costs/ # of ounces sold
I bought stock from .83-1.26 when I realized that they had 5000 ounces of gold on their balance sheet valued at 0.
I am new to gold stocks but I find the accounting strange. Their costs are not going up, instead their leach pad inventory is going up. Which is not being valued properly.
While I agree that the production has not kept pace with guidance. I believe that at 7 times next years operating cash flow, the stock has at least 50% upside with gold at these prices.