Wheels Group Inc GRFJF

Cost going up, production guidance down

[mlmack]

I sold all my shares last week in WGI due to the horrendous guidance given by the company on January 19th. For 2009 production was forecast in the 170,000 ounce range in the October 6th new mine plan guidance, now down to 140,000 - 150,000 oz. for the year. Average cost per oz. is rising from $430 to $595 - $605 for the first three quarters. How could they miss these numbers by such a large percentage. Also fourth quarter production dropped from 47,000 oz in the 3rd quarter to 30,000 oz., this was projected to be 37,000.

These guys had huge overruns in early 2008 and blamed fuel and tire costs, now they blame stripping ratio's, were these figures created on the back of a napkin. After McWhirter's #1 pick and the CEO on BNN that drove the SP to $2.55, got out in the low $2.40's.

With management missing the new mine guidance given in October, they better hope for a buyout !!!

[Hummerr]

If you sold why aer you still here ????

[mlmack]

Always keep up to date with the stocks that interest me. With the positive seasonality for gold now over (Nov. - end of Jan.) and the big run-up (.50 - 2.55) will look at getting back in possibly sometime in July if the production outlook improves.Energy is starting to perk up look at XEG, just broke out and very positive seasonality (Feb 1 - May 31)

[Bobbybax]

WGI costs change so much between quarters because they place no value on inventory. Cost/ounce = Total production costs/ # of ounces soldI bought stock from .83-1.26 when I realized that they had 5000 ounces of gold on their balance sheet valued at 0.I am new to gold stocks but I find the accounting strange. Their costs are not going up, instead their leach pad inventory is going up. Which is not