Wheels Group Inc GRFJF

If you have NOT done your homework on WGDFF

[uncviper23]

You MUST do your homework over this weekend on Western Goldfields! Next week in the US the federal reserve meets and if you haven't noticed there is a credit crisis the likes of 22 yrs. hasn't seen. Gold popped today but few miners moved. Most are terrified to go long. You GATA be in to WIN! As Bill and Chris say. So do your DD on this one. WGI or WGDFF in the US. I believe the numbers are to be celebrated and the closer we get to full blown production will have missed the best opportunities I believe. Next week or so could be the buying opportunity of our commodity bull lifetimes in miners! If you're here reading this you're obviously here for a reason so do yourself a favor and look at the numbers. I didn't make them up and I've already put my money where my mouth is. Have a great weekend all and forget the market this past week, it's history. Gold IMO is about to reprice. Hope I'm right. It's about time. Would you rather hold cash?

[nwtfe]

I bought a small position for the following reasons: - I belive that gold is going up. - WGI should move as we move towards actual mine production. My conerns, if anyone cares to address them are: - High cost per oz: $350 Cost of Sale, $416 total cost. This seems high relative to other producers. - Lack of growth potential. This is a one mine stock. There may be some exploration

[loantech1]

I am thinking this: Purepaloma, True enough, WGI has hedged 5500 oz/month for the first 78 months of production out of a 3.5 million oz resource. A resource that will last for over 21 years @165,000 oz/yr. Would it be nice if no company ever hedged? Of course it would. Did Randall Oliphant make a huge mistake in hedging such a large % of Barrick's output? Of course he did! However, WGI

[ichor]

Hedging is not a dirty word. It simply removes a lot of the risk from a risky business. Sure, we believe gold is going up, but that is not a guarantee. It's hedge position is a virtual guarantee, and it comes with a substantial premium above today's price. A home run is nice, but most games are won one base at a time.

[nwtfe]

These guys needed to hedge in order to secure financing and avoid share dilution. A pretty good deal imo. Hedge is over $800 and majority of production will be sold at market price. Loantech1 - How do you justify your $7-$8 share target? I think we see an easy 30% from here, but $8? Am I missing something? Do they have another couple million oz's hidden away somewhere?

[loantech1]

I am basing that call on Hugh Cleland's (One of Canada's top fund managers) remarks concerning WGDF: >>>> https://www.northernriversfunds.com/assets/downloads/Hugh%20August%202006%20Email.pdf

[loantech1]

On August 31st, Catherine Gignac of Wellington West initiated coverage on Western Goldfields with a 1-year target of C$3.50. What jumped out at me was that Ms Gignac came to much the same conclusion I did about the ultimate value in the stock: I have written on at least two occasions that my fair value estimate for Western Goldfields was in the $4-$10 range, depending on where the price of gold is

[loantech1]

Go to August 2006 letter for Hugh Cleland's fund to find the last post. I could not link: https://www.northernriversfunds.com/index.taf?t=4&n=28&_UserReference=E95FF542DA7E9CE245A7FD14

[nwtfe]

Thanks for the posts Loantech. I'd be curious to see how they calculated NPV at those levels. I'd also be curious to hear what you and the board think of my earnings calculations. According to my numbers, we would need to trade at nearly 20X earnings in order to reach $8. That seems awfully high to me. I have no problem seeing $3.50 or even $4.50 (about 10X earnings), but its a

[loantech1]

I think we can go to over 20 times earnings in a bull market. No fever like gold fever and in the last 6 years even though gold has done well we have not had the fever. Any other opinions on EPS in a gold bull for a geopolitical safe producer?