Post by
GoldStockGuy on Mar 19, 2008 3:26am
Peter Hodson, Sprott on WGI
WESTERN GOLDFIELDS (AMEX:WGW TSE:WGI): the stock has been doing okay but not as good as some of the other players. Of course they have 60 thousand ounces hedged at $800, at that time looked great but not great anymore. So it is not go to name in mid-cap space but they have 100,000 unhedged and that will be recognized. It is a great management team. I think the next catalyst will be buyout or merger. I think this is company dying to hook up with someone else. You get from 1 to 2 mines, their 160,000 ounces could go to 320,000 ounces, suddenly big player, could reduce hedge position. I always thought they would be great merger candidate with AURIZON MINES (AMEX:AZK TSE:ARZ), become capital markets play. Trouble with that is who runs it, egos involved. To turn bigger company then people will take notice..
https://www.mining-gold-stocks.com/2008/03/peter-hodson-senior-portfolio-manager_19.html
Comment by
mlmack on Mar 19, 2008 12:11pm
I think the best thing that could happen to WGI is if gold fell back to $775. It seems like every analyst now mentions the hedge book as a big negative.
Comment by
hardknocks on Mar 19, 2008 2:43pm
You may get your wish though I would think unlikly at this time. We are heading to $1200./Per ounce when the dust settles. Bargains were had in the past but now with the state of the US economy GOLD is a safe place.