GWA Group Ltd V.GWA

RE:RE:RE:RE:RE:RE:Don Durrett Analyzes Gowest

[zentrarianNZ]

Thanks, GOBOGOH. GWA certainly has a lot going for it. Not least of which is the ore-sorting technology you mentioned. Going from 6 gpt to 12 or more essentially doubles the resource. (Why isn't anybody else using this? Is it just the geochemistry involved?)

The low capex is nice too, as is the unbeatable location and the exploration upside. And I'm not too worried about the current price of gold. I plan to hold my shares until at least the end of 2016, when production should be, if not underway, at least well within sight. I expect a much higher PoG by then, and if anything like the 50% IRR at $1200 gold holds up, GWA will be a cash generating machine.

I give GWA a 23 out of 25 using my own rating system, which isn't all that different from Durrett's. The only thing I'm really concerned about is the financing and the takeover risk. Some of my best mining investments, though, have come out a perceived risk that the market exagerrates (another favorite of mine, PVG, is a good example) so hopefully any fears about the Chinese Connection will prove to be making a mountain out of a molehill.

Or as the Chinese say: "killing a mosquito with a cannon."