anyone seen 2013 Q1 operating results Hard to believe that nobody picks up this little company at current attractive levels (0.58/0.61). First of all my hat off for this very quick publication of the top line figures as the 2013 Q1 is less than two weeks old. WDO announced yesterday very good top revenue figures for the Eagle River Mine, with an astonishing 11 gAU/tonne gradings, rrrreally beating my expectations. On this front, management delivered what it promised, return to higher gradings. The Eagle River was good for 10k ounces, but they only milled around 28k tonnes of ore so that makes me believe total mining costs will be much lower than in previous quarter(s). The Mishi Mine was also a beat, better production with better gradings, this open pit mine was good for 1.2k ounces with a high 3.3 gAU/tonne. Looks Mishi has much more in store than previously anticipated. If management would be able to overcome the bottleneck at the mill, the Eagle River complex has some great potential. Both in growth in ounces as profitability in dollars.
Kiena will be mothballed, this money loosing operation will be put on care&maintenance at the end of this quarter and for us investors this is a good thing. Operations might be resumed one day when economics are more positive.
It will be waiting for the full details of the 2013 Q1 figures, but these top line figures let me believe that WDO should have made some good money at the Eagle River + Mishi Mine.
Bottom line this stock is trading way to cheap. It got hammered earlier this year due to a big institutional seller who hit the “exit-now-without-looking-back”-button and the stock tanked on the news of Kiena mine being put on hold. It looks like the stock is forming a base around current levels and is on the look out for a break higher to the 72c level. Of course, this would be only a very first intermediate stop if Eagle River keeps on delivering this good operational results and the output of the mill increases.
In a separate note, as being remarked by zutfie in another posting. Insiders have been buying their own WDO stock. Especially CEO Polllit has been active, volumes might be very small but overall trading volume in WDO is also depressing. Another proof that we are trading cheap, there are hardly sellers at current levels, all we need is some fresh buying interest.
Needless to say I am long WDO, I recently added to my holdings. I see WDO as a longer term investment.
Trappist