Be greedy… When others are fearful.
Mark IKN Weekly out with a negative report on $WEX yesterday.
Some newsletter writers are sure loose cannons.
He says he likes the company at $1.80/share just nine months ago.
Says he dislikes the company today because they didn't explore as aggressively as he hoped and have spent their money on other activities unrelated to aggressive drilling.
Fact is the ducks are in a row here for a huge drill program in the future. But programs like that aren't $3-$4m. They are $30-$40m. While the dumping these last few days are retail volumes, I believe these prices will be short lived. The gold isn't going anywhere.
Come Q1 2024 it is anticipated that the company will issue a resource estimate update and PEA/PFS on its most advanced orebodies. I believe these reports will show low capex mine restart with AISC in the neighborhood of $800-$900/ounce. As well as 2-2.5moz Au between both deposits at grades increasing from past resources.
At todays market cap that future data evaluation is being priced at $8-$9usd per ounce. The Eric Sprott model of valuation states deposits with M+I+I resources in the ground deserve fair valuation between $50-$100/oz.
Sounds like to me buyers of $WEX this December are getting a Christmas present they will get to unwrap just in just a few months ahead. I acquired more yesterday. Will continue to put in drink bids in case any more irrational selling. Pushing the price much lower from here just doesn't make a lot of sense.
Agnico was just blocked from expanding a mine in Canada from the Canadian Gov late last week. They spent $40m on exploration at that mine in 2023.
I think it makes way more sense for Agnico to pause investment in that region of Canada and shift it down south to Nevada short term. Restarting Doby George gets them the same production boost as expanding the Meliadine mine. Except likely costs them less money and can be achieved sooner. Given where the gold price appears to be going short term. I think Agnico doubling down on support for $WEX is a very smart choice for them. Another $20m to begin development at Doby George and a 25,000-40,000 drill program could unlock a ton of value for them as shareholders here. Instead of increasing production at Meliadine by 2030 by 60koz. Maybe they could be adding another 200-300koz/annum producer to there balance sheet. That's the prize as I see it.
So rare to be able to invest in a market this strong, an asset this strong, a team this strong and a market valuation so cheap!! Gimme more!!