Tuesday 30 August 2016

Sold MGX, Bought WPG

I swapped out of MGX at 29c and into WPG at 8.5c today. This is purely based on near term catalysts. 

I still like MGX but I don't know how long the story will take to play out. 

WPG has started producing gold, and has near term exploration upside. Reports of production and drilling results will both be SP catalysts. Along with the gold price. Even at current gold prices I don't believe the company is fairly valued based on its production rate which is to be 50koz annually. Even with an AISC of 1400 that's a FCF of 17.5m.

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