WDO and gold update A quick update on WDO:
- Loss making Kiena-mine wind down effective at the end of this month
- Company has been buying own shares under the Normal Course Issuer Bid. Might buy more?
- Eagle River Complex returned to higher, in line with historic average, grades and is profitable and generating cash at current gold price levels.
- Upward operational potential if mill bottleneck at Eagle River Complex can be sorted out
- Canadian miner, 25yr track record.
- Solid balance sheet with 10k ounces in inventory ($13+ mio)
- Limited need for CAPEX which can be funded out of operations.
- Target of 50.000 ounces for 2013, with growth potential for 2014 and on
- Kiena under care&maintenance. Can restarted in future on rising gold prices. This asset is an extremely powerful leverage on gold
- PEA on Moss lake to be expected later this month (any news is good news)
A quick update on Gold
- Momentum on Gold market is very negative with market positioned very short. Especially on Comex too much fast money on the short side.
- Gold did not print a new low post Bernanke (22th of May) on QE tapering woes. First sign of relative strength
- Gold and silver miners very much oversold. Who still needs to sell their shares? These guys are really Johnny come latelys
- Hard to say when but Gold market very vulnerable to a big short squeeze
Do not be surprised to see a hefty gold rally over the summer. A mean and lean Wesdome company will pick the fruits of its efforts.
Question to the forum. This company has some European followers, but seems at the local front it is very quiet. Canadians do not know this company or are there other reasons?
Thanks
Trappist