Wheels Group Inc GRFJF

wgi

[golf0707]

Can someone explain this price drop.
Isn't wgi's gold hedged at $800?
With the oil price going down it should be cheaper to operate the open pit mine,but the sp continues to drop.





I must be missing something..........



GOLF

[Orwell]

Some people would have said earlier that the gold hedge was a bad thing.Of course, now it looks good.In fact, if I were a producer, I would have been hedging like crazy with gold near $1000.Meanwhile most producers were dramatically reducing their hedge book.WGI is a low grade producer.  As such, it needs a high price of gold.With this leverage, WGI is a great investment as it benefits far