Wheels Group Inc GRFJF

WGI versus ARZ

[dudediligent]

If you have a look at the number of shares outstanding and the number of ounces produced between these two, WGI is undervalued going forward.

ARZ: 148 million outstanding
WGI: 134

ARZ: 158,000 ounces (2008)
WGI: 110,000

ARZ: 150,000 - 155,000ounces (2009) projected
WGI: 140,000 - 150,000 ounces

ARZ: Share price $4.32
WGI: Share price $2.40

WGI 2009 Highlights:

• Gold production for 2009 is expected to be in the range of 140,000 to 150,000 ounces, a significant increase over 2008;
• Gold production is expected to range from 33,000 to 38,000 ounces in each of the first three quarters, before increasing to 38,000 to 43,000 ounces in the fourth quarter;
• Gold production for the fourth quarter and full year 2008 totalled 30,465 and 110,412 ounces, respectively;
• The company reduced its debt by $17.7-million, to $68.6-million at Dec. 31, 2008.

ARZ Forecast gold production for 2009

It is estimated that Casa Berardi will produce between 150,000 to 155,000 ounces of gold in 2009 at an average grade of 7.9 grams of gold per tonne. Average daily mine production is estimated at 1,800 tonnes per day, in line with 2008. The slight decrease in gold production from 2008 is attributable to lower average gold grades. Approximately 60 per cent of the production will come from zone 113, 30 per cent from the recently developed Lower Inter zone, and the residual 10 per cent from smaller zones and development material.