RE:Reserves & Resources - CommentsIn my humble opinion a number of things affected the share price today. I'll list a few.
1) In reference to the grades and proven & probable resources, I read this today.
"According to Wesdome, the reserves and resource estimates at both sites reflect higher cut-off grades, reduced exploration budget in the second half of 2022, a higher allocation towards definition and infill drilling (including 25,000 metres in the Falcon Zone at Eagle River). They also reflect a more stringent and robust approach to reconciliation, 3D modeling and resource classification at both properties."
So the numbers may be lower but they are probably more dependable. With additional drilling it is quite likely that larger numbers will return but also with a higher degree of certainty.
2) Progress to the 129 level is moving forward as planned. The target arrival date was stated to be at the end of the year. That is 9.5 months away. Which leads me to point 3.
3) In 9.5 months it is quite possible that Wesdome will start mining at a rate of 200,000 ounces per year. Further, when that time comes the AISC is going to drop roughly in half. Maybe it's just me but when the market cap of Wesdome only reflects a little more than the infrastructure in place and the company is less than a year away from doubling its production and halving its costs, it seems that there is an opportunity.
4) As for the share price I simply believe that WDO is going way higher. However, it is probably going to be choppy for a while yet. I think that there are entities that are dumping their shares because they bought at say, 12 - 16 bucks. It's most likely dead money for a year. At the same time there are new entities banking on points 2 & 3 above and the potential of a solid double or more. Like I said in a previous post. When Tom Stanley's Resolute Funds dumped their 20% position it was hard for the share price to move up but when they were done it was clear sailing. I am very interested to know who is unloading, how much they have, and the current short position?
5) Then there is the macro view. Gold is up and many analysts that I follow are saying it is going higher and that 2023 is the year it breaks $2000 and stays there. So many factors like SCO\BRICS moving to a gold backed currency exchange, higher US interest rates which will tank the DOW\SP500\NASDAQ\housing markets, bank failures (SVB), wars, Saudi's selling oil in Yuan, etc...
Good luck everyone!
GB